Will the tepid financial results just released by Tribune Co. strengthen the hand of its unhappy largest shareholder? The media company's profits plunged 63% in the second quarter while revenue
declined about 1% to $1.43 billion. The numbers come in the middle of a boardroom battle between Tribune and the Chandler Trusts, which own about 14% of the company and have opposed a share buyback
plan while calling for a breakup of the company.
Crain's Chicago Business says a representative of the Chandlers declined to comment, but Edward Atorino, an analyst at Benchmark Co., says the
results could help the Chandlers build pressure on the company. "If Tribune continues to struggle on the bottom line, they may lose support of shareholders. That may work in favor of the Chandlers.
But it's still early in the game." James Goss, an analyst at Barrington Research, counters that while profits were down, "it doesn't move the needle" in the Chandler fight.
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