EmptyTribune's wild ride
Chicago real estate tycoon Sam Zell remains committed to taking Tribune Co. private, a source close to the transaction said Tuesday, as shares of the U.S. newspaper publisher and broadcaster fell on concerns that the deal might fall through. Tribune shares fell as low as $24.46 on Tuesday — nearly $10 below the $34 a share that investors are receiving if the company goes private — before recovering to $25.28, off 2% on the day.
Image loss grows
DVD distribution company Image Entertainment Inc. said Tuesday that its fiscal first-quarter loss increased from $2.3 million a year ago to $2.6 million on revenue that dropped 6.6% to $20.9 million. The company said its quarterly results were hurt by costs associated with the closing of a Las Vegas distribution center and legal fees connected with a merger. Top-selling DVDs in the quarter included "Mythbusters: Collection 1," "Survivorman," "The Third Man" and "Steven Wright: When the Leaves Blow Away."
ACME Communications on Tuesday reported a second-quarter loss of $1.8 million, down from net income of $3.8 million in the same period a year ago. Revenue decreased 4% year-over-year to $8.3 million. Results don't include a station in Decatur, Ill., that is subject to sale. Executives said nonpolitical advertising negatively impacted results. Overall, however, management said that third- and fourth-quarter sales pacings suggest an ad rebound. The company also said its "The Daily Buzz" news show, of which it owns 50%, could achieve a break-even run rate in the fourth quarter.