Tribune’s Musical Chairs: Zell Out, Michaels In
(Dec. 2, 2009) Tribune Co. has made a change in management during the last stages of its Chapter 11 bankruptcy reorganization, today naming chief operating officer Randy Michaels to fill Sam Zell’s shoes as CEO. Michaels also joins Tribune’s board of directors, while Zell stays on as chairman.
In a way, it’s a graceful “stepping aside” for Zell, who has been somewhat of a lightning rod since leading a mega-buyout of the company in 2007.
Here is Tribune’s official announcement:
Tribune Company Announces Leadership Transition
Randy Michaels Named Chief Executive Officer, Elected to Board of Directors
Sam Zell Remains Tribune Chairman
CHICAGO, December 2, 2009 — Tribune Company announced today that its board of directors has named Randy Michaels Chief Executive Officer; Michaels has also been elected to the board. Sam Zell remains Tribune’s Chairman and will continue to provide the management team with strategic oversight and vision.
Zell recommended the leadership transition to the board, saying, “This appointment reflects Randy’s increasing responsibilities. During the last two years, we’ve made substantial progress transforming Tribune from a collection of newspapers and television stations to a fast-paced, innovative media company that is using its scale and brands to compete more effectively than ever before.”
“At this point in Tribune’s evolution, no one is better suited to lead the company forward. Randy has a unique combination of real-time creativity, expertise and passion, and I completely trust his judgment and his leadership.”
Michaels was appointed Chief Operating Officer in May, 2008, and has been part of the company’s senior executive team since Tribune’s going-private transaction in December 2007. Prior to becoming COO, Michaels served as executive vice president and chief executive officer of Tribune’s interactive and broadcast divisions
“I am grateful to Sam and the members of the board for this vote of confidence and the opportunity,” said Michaels. “I look forward to continuing to work closely with Sam and the rest of the board — this is a great company with a great future.”
“There is a lot of work yet to do,” he continued, “but we have tremendously talented people and world-class brands in print, on air and online. Our businesses are profitable and we’re gaining market-share and momentum in a tough environment. The entire management team is focused on the long-term and keeping Tribune at the cutting-edge of creativity and innovation, which will translate into success on the bottom-line.”
Michaels’ new role is pivotal to the future of Tribune, while the management shuffle allows Zell to remain in a fairly active role with the company while being removed from day-to-day operations. Tribune has until Feb. 28 to submit its final reorganization plan to a Delaware bankruptcy court.
Michaels and Zell share a colorful history, which is laid out in my new book, Money Talks, Bullsh*t Walks, Inside the Contrarian Mind of Billionaire Mogul Sam Zell, due out the end of this month.
