Does Tribune purchase of TV stations impact its newspaper sale?

From the outside, there's really no way of knowing. On a conference call this morning, Tribune CEO Peter Liguori reiterated that "we are looking at all of our strategic options," stressing that while the newspaper group is up for sale, there's no guarantee that a deal will be made. "I'm an operator," he said, "and we are going to operate newspapers at the highest levels possible. M&A is our night job; we know what our day job is." Reuters reports that Tribune officials have been preparing marketing materials for a possible sale of its newspaper group (which includes the LAT and Chicago Tribune), though the process appears to be taking longer than initially expected. Possible complications include Tribune's stake in two digital properties (CareerBuilder and Classified Ventures) and a giant tax bill from the sale of Newsday and the Chicago Cubs. Complications aside, it's still hard to see how Tribune ends up keeping the papers, especially if there are enough serious bidders out there. By becoming the nation's largest TV broadcaster with the purchase of another 19 stations, Tribune is signaling its strategic interest. But wait a second, weren't local stations supposed to be a dying franchise? Well yes, but that was before they began demanding the same re-transmission fees as that of the networks. The new strategy is to gain leverage on the cable and satellite companies by owning as many stations as possible. From the WSJ:

"Our investment thesis is simple: scale matters," said Tribune CEO Peter Liguori, during a call with analysts Monday morning explaining the deal. "Clearly, on an industry front, there is an acceleration of consolidation, and that's to be expected. We're a mature business, and mature businesses witness levels of consolidation." The acquisition of Local TV, owned by private-equity firm Oak Hill Capital Partners, will increase Tribune's stations in the U.S. to 42, making it the biggest commercial-TV station owner in the U.S. Tribune expects the combination will generate more than $100 million in annual "synergies" within five years after the deal closes, which is expected by year's end. Tribune Chief Financial Officer Chandler Bigelow told analysts that three quarters of these synergies will come from increased revenue thanks to better negotiating positions in national advertising sales and retransmission consent negotiations.