Tribune Transformation Starts With Paper Spin-Off

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July 10 (Bloomberg) -- Tribune Co., publisher of the Los Angeles Times, Chicago Tribune and Baltimore Sun, plans to spin off its newspapers into a separate business, letting the company focus on its more lucrative local television stations. Cristina Alesci reports on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Another deals day, today, you could say, "and the tribune closed but separating its businesses.

-- "the tribune" separating its businesses.

What we are seeing here is " the tribune" splitting itself into the newspaper business on one side and the television business on the other.

Not a surprise, we did note that the newspapers were for sale.

On the one hand you can view this as -- there was no real bid out there and there may not have been a logical buyer, on the other hand it is probably a more tax efficient way to do this and they can probably realize a little more value this way.

Remember, this puts them in a good position for that television company to potentially be lifted on the exchange.

Absolutely.

It is tough to value these companies when they split apart.

Breaking up, it is probably worth more in the overall stock.

This has been an amazing transformation, talking about the company emerging from bankruptcy not long ago, here they are basically executing a full transformation from what we think of as a newspaper company into a television company.

Quickly, the publishing arm of not be publicly traded?

Not yet, but it should be in the same way that tribune is right now.

All of those details still have to be worked out.

Let's get to the sexy story, shall we?

"maxim " magazine, look at this, you would think that it was doing well, but it is up for sale.

Advertising every day of the week.

You could see the appeal of that strategy, but i guess it did not work.

Absolutely.

They have seen revenue go down on a quarterly and annual basis it will really start this quarter with a 45% drop at a time when advertising revenue is coming back for the print media business.

Put the product really has a problem with is lack of investment.

Remember, owners paid top dollar in 2007, giving up on that two years later.

Creditors are selling it in taking a bath on their investment.

It is not like they will spend more money and turning it around to a digital strategy.

The maxxam -- closed -- "maxim" website that they have looks more like a blog post.

They do not look ready for the digital age.

I have to say, i had to cancel my subscription a few years ago.

[laughter] who is going to buy this thing?

We have learned that there are some potential bidders out there, but the most logical has a whole suite of personal fitness products, a partnership with "playboy." we thought that they would be interested, but apparently that passed on the opportunity and it needs to be borne out.

This text has been automatically generated. It may not be 100% accurate.

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