This would give Zell control of several major newspapers including the LA Times and the Chicago Tribune, 23 television stations, and the Chicago Cubs baseball team.

A committee is scheduled to meet late this week to make a decision. A mere week ago, Zell’s offer looked ready to fall flat, as the committee expressed worry over the amount of debt involved in the plan. Zell in turn added more money to the plan, bringing the total cash portion to $300 million.

Even if Tribune Co. accepts the offer, the logistics of the deal could complicate matters. Tribune Co. has exemption from the Federal Communications Commission allowing them to own TV stations and newspapers in the same markets, something not guaranteed to a new owner. Further, Tribune Co. is already in debt and may have trouble withstanding larger debts incurred in the buyout.

In late 2006, Tribune Co. considered selling, but postponed the decision until the first quarter of this year. Last year, the company received offers from rivals Gannett Co., Rupert Murdoch, and the Chandler family, former owners of the LA Times.

Source: Wall Street Journal Online through Media Bistro