The Deal from Hell (53 page)
Read The Deal from Hell Online
Authors: James O'Shea
118
Within three years, NCN folded
“New Media Meltdown at New Century,” by Jeanne Dugan,
Business Week
, March 23, 1998.
Within three years, NCN folded
“New Media Meltdown at New Century,” by Jeanne Dugan,
Business Week
, March 23, 1998.
119
“He came before the board and told us that . . .”
Author's interview with Newton N. Minow, Chicago, IL, winter 2010.
“He came before the board and told us that . . .”
Author's interview with Newton N. Minow, Chicago, IL, winter 2010.
120
Madigan and Fuller also sharply increased
Tribune Company, 2003 Annual Report, February 2004. The details on the American Online transaction were confirmed in the author's interview with Scott C. Smith, Chicago, IL, December 2010.
Chapter 8: Inside the MergerMadigan and Fuller also sharply increased
Tribune Company, 2003 Annual Report, February 2004. The details on the American Online transaction were confirmed in the author's interview with Scott C. Smith, Chicago, IL, December 2010.
123
Once a year, the paper's editors
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
Once a year, the paper's editors
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
125
He'd reported Madigan's approach to his board
Author's interview with Mark Willes, Salt Lake City, UT, 2010.
He'd reported Madigan's approach to his board
Author's interview with Mark Willes, Salt Lake City, UT, 2010.
125
Skip Zimbalist, who had just become the Times Mirror CFO
Author's interview with Efrem (Skip) Zimbalist III, Los Angeles, CA, fall 2010, and by telephone, winter 2009.
Skip Zimbalist, who had just become the Times Mirror CFO
Author's interview with Efrem (Skip) Zimbalist III, Los Angeles, CA, fall 2010, and by telephone, winter 2009.
126
“A fundamental premise of journalism”
“ Trouble with the
LA Times
,”News Hour with Jim Lehrer, December 1999. The quote came from a transcript of Weinstein's interview with Terence Smith regarding the Staples incident and other problems at the
Times
.
“A fundamental premise of journalism”
“ Trouble with the
LA Times
,”News Hour with Jim Lehrer, December 1999. The quote came from a transcript of Weinstein's interview with Terence Smith regarding the Staples incident and other problems at the
Times
.
127
“Mark Willes is just a symbolâand perhaps even a victim . . .”
“The Way We Live Now: 01-09-00: Word & Image; The Wall, Vindicated,” by Max Frankel,
New York Times
, January 2000.
“Mark Willes is just a symbolâand perhaps even a victim . . .”
“The Way We Live Now: 01-09-00: Word & Image; The Wall, Vindicated,” by Max Frankel,
New York Times
, January 2000.
127
Even Otis Chandler broke his silence
Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty
, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).
Even Otis Chandler broke his silence
Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty
, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).
128
A native of Evanston, Illinois, Tom Unterman
Author's interviews with Thomas Unterman, Los Angeles, CA, fall 2010; and Jack Fuller, Chicago, IL, fall 2008 and winter 2009.
A native of Evanston, Illinois, Tom Unterman
Author's interviews with Thomas Unterman, Los Angeles, CA, fall 2010; and Jack Fuller, Chicago, IL, fall 2008 and winter 2009.
128
“I told Tom we are not going to . . .”
Author's interview with Jack Fuller, Chicago, IL, fall 2008, and winter 2009; and with Efrem (Skip) Zimbalist, III, Los Angeles, CA, fall 2010; and by telephone, winter 2009.
“I told Tom we are not going to . . .”
Author's interview with Jack Fuller, Chicago, IL, fall 2008, and winter 2009; and with Efrem (Skip) Zimbalist, III, Los Angeles, CA, fall 2010; and by telephone, winter 2009.
129
“We went there first and then they [the Chandlers] ...”
Author's interview with John Madigan, Chicago, IL, winter 2008.
“We went there first and then they [the Chandlers] ...”
Author's interview with John Madigan, Chicago, IL, winter 2008.
129
His mentor, Ira Harris, considered him a strong
Author's telephone interview with Ira Harris, fall 2010.
His mentor, Ira Harris, considered him a strong
Author's telephone interview with Ira Harris, fall 2010.
130
By March 2000, Madigan and the Chandlers
Tribune Company, Proxy Statement, May 2000. The details of the deal and the due diligence were outlined in the proxy report filed with the U.S. Securities and Exchange Commission.
By March 2000, Madigan and the Chandlers
Tribune Company, Proxy Statement, May 2000. The details of the deal and the due diligence were outlined in the proxy report filed with the U.S. Securities and Exchange Commission.
132
“Tom and everybody else were talking about . . .”
Author's interview with Mark Willes, Salt Lake City, UT, 2010.
“Tom and everybody else were talking about . . .”
Author's interview with Mark Willes, Salt Lake City, UT, 2010.
132
a severance package worth $64.5 million
The size of Willes' severance was originally computed by James Bates and Michael Hiltzek based on pubic records and figures that Willes provided to the two
Los Angeles Times
reporters. Several other reports said the figure could be higher, but Willes deferred some of his compensation and now is a substantial creditor in the Tribune Company bankruptcy.
a severance package worth $64.5 million
The size of Willes' severance was originally computed by James Bates and Michael Hiltzek based on pubic records and figures that Willes provided to the two
Los Angeles Times
reporters. Several other reports said the figure could be higher, but Willes deferred some of his compensation and now is a substantial creditor in the Tribune Company bankruptcy.
133
Tribune had acquired Times Mirror for $95 a share in cash and stock
Tribune Company, Proxy Statement, May 2000.
Tribune had acquired Times Mirror for $95 a share in cash and stock
Tribune Company, Proxy Statement, May 2000.
134
The combined company's Internet audience
“The
chicagotribune.com
: Creating a Newspaper for The New Economy,” by Professor Nina Ziv, Institute for Technology and Enterprise, Polytechnic University, New York, October 2000.
The combined company's Internet audience
“The
chicagotribune.com
: Creating a Newspaper for The New Economy,” by Professor Nina Ziv, Institute for Technology and Enterprise, Polytechnic University, New York, October 2000.
134
On March 13, Hiller stood before
Author's interviews with David Hiller, Chicago, IL, winter 2008, and winter 2010.
Chapter 9: Making NewsOn March 13, Hiller stood before
Author's interviews with David Hiller, Chicago, IL, winter 2008, and winter 2010.
135
an extraordinary series called “Trial and Error”
“Prosecution on Trial in DuPage,” by Maurice Possley and Ken Armstrong,
Chicago Tribune
, January 1999.
an extraordinary series called “Trial and Error”
“Prosecution on Trial in DuPage,” by Maurice Possley and Ken Armstrong,
Chicago Tribune
, January 1999.
135
But his sources in the legal community
Author's telephone interview with Ken Armstrong, former
Chicago Tribune
reporter, fall 2010.
But his sources in the legal community
Author's telephone interview with Ken Armstrong, former
Chicago Tribune
reporter, fall 2010.
137
Three years later, in January 2003, late on a
Author's interview with Ann Marie Lipinski, Chicago, IL, winter 2010.
Three years later, in January 2003, late on a
Author's interview with Ann Marie Lipinski, Chicago, IL, winter 2010.
140
The company made $650 million in profit on revenues of $5.3 billion the first year
Tribune Company, 2003 Annual Report, February 2004.
The company made $650 million in profit on revenues of $5.3 billion the first year
Tribune Company, 2003 Annual Report, February 2004.
140
country to report and write “Code Blue”
“Code Blue: Survival in the Sky,” by John Crewdson,
Chicago Tribune
, July 1996.
country to report and write “Code Blue”
“Code Blue: Survival in the Sky,” by John Crewdson,
Chicago Tribune
, July 1996.
141
Organizations like Save the Children Federation
“The Miracle Merchants,” by Lisa Anderson,
Chicago Tribune
, March 1998.
Organizations like Save the Children Federation
“The Miracle Merchants,” by Lisa Anderson,
Chicago Tribune
, March 1998.
141
Dr. Bob Arnot, the physician who regularly
Author's telephone conversation with Dr. Bob Arnot. Arnot called the author when he was deputy managing editor for news at the
Chicago Tribune
and the editor who supervised the Save the Children coverage.
Chapter 10: A Changing LandscapeDr. Bob Arnot, the physician who regularly
Author's telephone conversation with Dr. Bob Arnot. Arnot called the author when he was deputy managing editor for news at the
Chicago Tribune
and the editor who supervised the Save the Children coverage.
149
Leo Wolinsky drove down the
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
Leo Wolinsky drove down the
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
150
As editor of the
Baltimore Sun
, Carroll
Author's telephone interview with John Carroll, summer 2009.
As editor of the
Baltimore Sun
, Carroll
Author's telephone interview with John Carroll, summer 2009.
150
About three weeks before
In December 1999, David Willman of the
Los Angeles Times
wrote a two-part series reconstructing the Food and Drug Administration's fast-track approval process for the diabetes drug Rezulin and uncovered high-pressure lobbying, attempts to silence critics, and 33 deaths of people who had taken the medication.
About three weeks before
In December 1999, David Willman of the
Los Angeles Times
wrote a two-part series reconstructing the Food and Drug Administration's fast-track approval process for the diabetes drug Rezulin and uncovered high-pressure lobbying, attempts to silence critics, and 33 deaths of people who had taken the medication.
151
Carroll had been editor of the
Lexington
(Kentucky)
Author's telephone interview with John Carroll, summer 2009.
Carroll had been editor of the
Lexington
(Kentucky)
Author's telephone interview with John Carroll, summer 2009.
152
All eyes fell upon the tall, lanky, unflappable
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
All eyes fell upon the tall, lanky, unflappable
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010.
153
In the business offices of the
Times
, Puerner shook
Author's telephone interview with John Puerner, winter 2010.
In the business offices of the
Times
, Puerner shook
Author's telephone interview with John Puerner, winter 2010.
153
Otis was happy about the change
Author's interview with Efrem (Skip) Zimbalist III, Los Angeles, CA, fall 2010, and by telephone, winter 2009. The substance of
the Chandlers' sentiment was also confirmed in the author's interview with John Madigan, Chicago, IL, winter 2008, and
Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty
, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).
Otis was happy about the change
Author's interview with Efrem (Skip) Zimbalist III, Los Angeles, CA, fall 2010, and by telephone, winter 2009. The substance of
the Chandlers' sentiment was also confirmed in the author's interview with John Madigan, Chicago, IL, winter 2008, and
Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty
, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).
154
Dean P. Baquet was an unconventional
Author's telephone interview with Dean Baquet, winter 2010.
Dean P. Baquet was an unconventional
Author's telephone interview with Dean Baquet, winter 2010.
155
One of his fondest New Orleans journalistic
Author's recollection of conversation with Dean Baquet. The quote was widely repeated and became standard fare in stories about Edwards. Other details on Baquet's career came from “Nothing but Fans,” by Rachel Smolkin,
American Journalism Review
, August/September 2005.
One of his fondest New Orleans journalistic
Author's recollection of conversation with Dean Baquet. The quote was widely repeated and became standard fare in stories about Edwards. Other details on Baquet's career came from “Nothing but Fans,” by Rachel Smolkin,
American Journalism Review
, August/September 2005.
157
When two heavily armed gunmen wearing body
“Gunfire, Hostages and Terror, Suspect Slain, Ten Officers Injured in Heist Gone Awry,” by Beth Schuster and Doug Smith,
Los Angeles Times
, March 1997.
When two heavily armed gunmen wearing body
“Gunfire, Hostages and Terror, Suspect Slain, Ten Officers Injured in Heist Gone Awry,” by Beth Schuster and Doug Smith,
Los Angeles Times
, March 1997.
158
By 2003, Puerner had cut the
Author's telephone interview with John Puerner, winter 2010; and Tribune Company, 2003 Annual Report, February 2004.
By 2003, Puerner had cut the
Author's telephone interview with John Puerner, winter 2010; and Tribune Company, 2003 Annual Report, February 2004.
158
“For years, the newspaper industry had . . .”
Author's interview with David Hiller, Chicago, IL, winter 2008 and winter 2010.
“For years, the newspaper industry had . . .”
Author's interview with David Hiller, Chicago, IL, winter 2008 and winter 2010.
160
Much had been made over Carroll's zealous
The dispute over the similarities between the editor of the
Baltimore Sun
on Simon's show and John Carroll is well documented in various magazine and newspaper articles, such as “The Angriest Man in Television,” by Mark Bowden,
Atlantic Magazine
, January/February 2008.
Chapter 11: Market-Driven JournalismMuch had been made over Carroll's zealous
The dispute over the similarities between the editor of the
Baltimore Sun
on Simon's show and John Carroll is well documented in various magazine and newspaper articles, such as “The Angriest Man in Television,” by Mark Bowden,
Atlantic Magazine
, January/February 2008.
163
In July 1982, a tall, athletic
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003; and official Tribune Company biography for Dennis FitzSimons. The details of FitzSimons' early years at Tribune came from these sources and interviews with Tribune executives who knew him. FitzSimons confirmed the details in an interview with the author in Chicago, IL, winter 2010.
In July 1982, a tall, athletic
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003; and official Tribune Company biography for Dennis FitzSimons. The details of FitzSimons' early years at Tribune came from these sources and interviews with Tribune executives who knew him. FitzSimons confirmed the details in an interview with the author in Chicago, IL, winter 2010.
164
In a profile of FitzSimons,
Los Angeles Times
, reporter
“Tribune CEO Is Expected to Keep His Cool in Fight; Dennis FitzSimons, who has been something of a mystery despite his job, faces public criticism,” by Thomas S. Mulligan,
Los Angeles Times
, June 2006.
In a profile of FitzSimons,
Los Angeles Times
, reporter
“Tribune CEO Is Expected to Keep His Cool in Fight; Dennis FitzSimons, who has been something of a mystery despite his job, faces public criticism,” by Thomas S. Mulligan,
Los Angeles Times
, June 2006.
165
Instead of acquiring programming, or shows
Author's telephone interview with Vinnie Malcolm, former manager of KTLA-TV in Los Angeles, a Tribune Company broadcast property, winter 2010.
Instead of acquiring programming, or shows
Author's telephone interview with Vinnie Malcolm, former manager of KTLA-TV in Los Angeles, a Tribune Company broadcast property, winter 2010.
165
Within a year of arriving at Tribune
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
Within a year of arriving at Tribune
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
166
Unlike Dowdle and Madigan, said Jim Kirk
Author's interview with Jim Kirk, former marketing and media columnist for the
Chicago Tribune
, winter 2011.
Unlike Dowdle and Madigan, said Jim Kirk
Author's interview with Jim Kirk, former marketing and media columnist for the
Chicago Tribune
, winter 2011.
166
WGN had been locked in a long feud
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
WGN had been locked in a long feud
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
166
Together, Dowdle and FitzSimons led
Tribune Company, 2003 Annual Report, February 2004.
Together, Dowdle and FitzSimons led
Tribune Company, 2003 Annual Report, February 2004.
167
When TV syndication mogul Roger King
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
When TV syndication mogul Roger King
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
167
When Barry Meyer, then head of Warner Bros. TV
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
When Barry Meyer, then head of Warner Bros. TV
“Tribune's Chief Is Second to None,” by Steve McClellan,
Broadcasting & Cable
, April 2003.
168
was a phenomenon known as “market-driven journalism,”
Market Driven Journalism: Let the Citizen Beware?
by John H. McManus (London: Sage Publications, 1994).
was a phenomenon known as “market-driven journalism,”
Market Driven Journalism: Let the Citizen Beware?
by John H. McManus (London: Sage Publications, 1994).
169
“Somewhere in the late 1960s . . .”
Market Driven Journalism: Let the Citizen Beware?
by John H. McManus (London: Sage Publications, 1994).
“Somewhere in the late 1960s . . .”
Market Driven Journalism: Let the Citizen Beware?
by John H. McManus (London: Sage Publications, 1994).
171
judged him by the yardstick most CEOs
Tribune Company, 2003 Annual Report, February 2004.
judged him by the yardstick most CEOs
Tribune Company, 2003 Annual Report, February 2004.
171
“I'm always being accused of looking at everything through . . .”
Author's recollection of his first meeting with Dennis FitzSimons, Tribune Tower, 2000. The author reconstructed details of the meeting, partially from memory and partially from e-mails that the author had sent to others in Tribune Company documenting the meeting.
“I'm always being accused of looking at everything through . . .”
Author's recollection of his first meeting with Dennis FitzSimons, Tribune Tower, 2000. The author reconstructed details of the meeting, partially from memory and partially from e-mails that the author had sent to others in Tribune Company documenting the meeting.
172
“One of the issues that caused distress . . .”
Author's interview with David Hiller, Chicago, IL, winter 2008, and winter 2010.
“One of the issues that caused distress . . .”
Author's interview with David Hiller, Chicago, IL, winter 2008, and winter 2010.
173
By 2001, Tribune owned twenty-three television stations
Tribune Company, 2003 Annual Report, February 2004.
By 2001, Tribune owned twenty-three television stations
Tribune Company, 2003 Annual Report, February 2004.
175
The average reader in Southern California
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010; and Wolinsky's “Retreat Presentation,” a detailed study of the
Los Angeles Times
readership and circulation.
The average reader in Southern California
Author's interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008â2010; and Wolinsky's “Retreat Presentation,” a detailed study of the
Los Angeles Times
readership and circulation.
176
“He [FitzSimons] wanted to edit the paper by referendum,”
Author's telephone interview with John Carroll, summer 2009.
“He [FitzSimons] wanted to edit the paper by referendum,”
Author's telephone interview with John Carroll, summer 2009.
178
Geraldo Rivera, then a Fox News reporter
“War news from Rivera seems off the mark,” by David Folkenflik,
Baltimore Sun
, December 2001. In the story, Rivera acknowledged that he never visited the “hallowed ground” where the battle took place.
Chapter 12: Buy the NumbersGeraldo Rivera, then a Fox News reporter
“War news from Rivera seems off the mark,” by David Folkenflik,
Baltimore Sun
, December 2001. In the story, Rivera acknowledged that he never visited the “hallowed ground” where the battle took place.
181
a letter from a street-smart lawyer
Letter from Joseph O. Giaimo to Harold Foley of Utica, New York, dated September 7,2000.
a letter from a street-smart lawyer
Letter from Joseph O. Giaimo to Harold Foley of Utica, New York, dated September 7,2000.
182
The Colonel's
Tribune
had hired the likes
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
The Colonel's
Tribune
had hired the likes
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
182
newsstands and even “toss a goon”
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
newsstands and even “toss a goon”
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
182
When Brumback took on the unions at the
STRIKE, The Daily News War and the Future of American Labor
, by Richard Vigilante (New York: Simon and Schuster, 1994).
When Brumback took on the unions at the
STRIKE, The Daily News War and the Future of American Labor
, by Richard Vigilante (New York: Simon and Schuster, 1994).
183
Almost from the day that the Colonel's niece, Alicia
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
Almost from the day that the Colonel's niece, Alicia
The Colonel, The Life and Legend of Robert R. McCormick
, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997).
183
Tribune's only tabloid boasted the
Letter to advertisers from Patricia A. Burnagiel, vice president, advertising,
Newsday
, December 1, 2002. Also, attachment to advertising letter entitled, “For Some People, This is the Untold Circulation Story of the New York ADI.”
Newsday
/
NY Newsday
is the largest newspaper in the NY ADI.
Tribune's only tabloid boasted the
Letter to advertisers from Patricia A. Burnagiel, vice president, advertising,
Newsday
, December 1, 2002. Also, attachment to advertising letter entitled, “For Some People, This is the Untold Circulation Story of the New York ADI.”
Newsday
/
NY Newsday
is the largest newspaper in the NY ADI.
183
From all appearances, Sito didn't
Author's interview with Louis Sito, Greeneville, SC, summer 2009.
From all appearances, Sito didn't
Author's interview with Louis Sito, Greeneville, SC, summer 2009.
184
A federal prosecutor who investigated
Author's telephone interview with one of the prosecutors in the
Newsday
investigation who talked only on the condition of confidentiality.
A federal prosecutor who investigated
Author's telephone interview with one of the prosecutors in the
Newsday
investigation who talked only on the condition of confidentiality.
185
To make sure that
Newsday'
s circulation increased
Crabhouse of Douglaston, Inc. et al.
vs.
Newsday, Inc.
et al., 4th Amended Class Action Complaint, U.S. District Court, Eastern District of New York, September 2006.
To make sure that
Newsday'
s circulation increased
Crabhouse of Douglaston, Inc. et al.
vs.
Newsday, Inc.
et al., 4th Amended Class Action Complaint, U.S. District Court, Eastern District of New York, September 2006.
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