Chief Executive Officer Peter Liguori of Tribune Co. accelerated the wave of alliances. The CEO's US$2.73 billion purchase of 19 TV stations strengthened the influence of broadcasters and network owners. His current acquisitions undermined the cable providers in pay-TV deals.
Liguori's negotiations with Local TV Holdings LLC that was reported yesterday would extend Tribune's broadcast. The all-cash agreement would bring the company's footprint into 50 million houses. Cable companies like Comcast Corp. and Time Warner Cable Inc. were expected to pay higher licensing fees to Tribune. Liguori's firm would provide the rights to air the local broadcasts.
"Part of the investment thesis of the deal is marrying a larger distribution footprint with investment in content," Liguori stated in an interview yesterday. "There's so much potential now with this deal."
The revenue Liguori would receive was anticipated to give him more firepower to invest in new software designs. This, in turn, would allow Tribune to compete on paid content. This division would further allow the CEO to earn more billions of dollars.
Join the Conversation