The Tribune Company will spinoff its publishing business on Aug. 4 and will begin regular trading on the New York Stock Exchange the following day.
The media conglomerate’s board of directors approved final details of the split, paving the way for the separation of the two companies after years of failed sales and institutional uncertainty. The publishing company will consist of the Los Angeles Times, the Chicago Tribune and a half-dozen regional papers.
The spinoff comes as the publishing industry faces a shifting climate for ad sales and a range of digital upstarts who are eating into both their market share and news-breaking ability. The publishing company will also reportedly carry $350 million of debt after the separation. By spinning off its publishing assets, the Tribune Company can concentrate on its more lucrative television and digital properties.
The company plans to issue 25.4 million shares as part of the split. The Tribune Company will continue to hold 1.5% of the outstanding shares of the publishing company’s common stock. Shareholders of Tribune Company will get a quarter of a share of the new publishing entity’s common stock for each share they hold.
The new publishing company will trade under the symbol “TPUB.”