How will the Tribune Publishing Company Fare?

The employees of the Operation Departments at the eight Tribune owned newspapers are bracing for the unknown as the newspapers are placed into their own group called Tribune Publishing Company. 

With advertisers exploring other options for selling their products, the number of pages continues to recede as stated in this article on LAObserved. As readers also find other methods of obtaining news, circulation of the newspaper has been affected in a negative direction, even though the newspaper reports circulation increases. A portion of online readers are now included in the total circulation of each newspaper, hence the increases.

Cost cutting will be the top priority of the remaining managers of Operations, as the newspapers will either remain profitable or cease publication. As I stated on July 2nd, 2013, are publishers needed?

Walter Hamilton has a revealing piece titled: Tribune names real estate chief as it spins off newspapers

Tribune said last week that it would cleave off its newspaper unit into a separate company consisting of The Times, the Chicago Tribune and its six other daily papers. All other assets — including real estate and ownership stakes in several valuable Internet companies — would remain part of Tribune Co.

Without those assets, the new publishing unit would have less of a financial cushion. The newspapers' ad revenue has slid sharply, leaving them little room to maneuver if the economy sours.

"That's certainly not the intention of the Tribune board or its large investors, to set this up for failure — but it's a risk," said Craig Huber, a media analyst at Huber Research Partners. "You don't have anything you can fall back on. You can't sell any real estate or Internet properties."

In the first quarter, Tribune's newspaper ad revenue sagged 9% after sliding 14.5% the previous two years. All the papers remain profitable, partly because of deep layoffs and cost cuts.

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