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Apr-15-2008Tribune, Channel 8 offer staff buyouts(topic overview)
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Florida Communications Group offered voluntary buyouts Monday to half the employees at the Tampa Tribune, WFLA-Ch. 8, TBO.com and several other news outlets in the Tampa Bay area, in a move some analysts saw as a sign of the continuing weakness of the state's media economy. The company, a subsidiary of Richmond, Va. -based Media General, opened the offer to about half its 1,326 employees, with some staffers qualifying for up to 39 weeks of severance pay, according to FCG president John Schueler. The goal, Schueler said, is to reduce staff costs while melding the responsibilities of staff across their different media types, or platforms, in the same way their "convergence" efforts unite newsgathering efforts across television, print and online media. [1] John Schueler is the president of Florida Communications Group, which oversees the operation of The Tampa Tribune, WFLA-TV, the Web site TBO.com and Media General's other Florida properties. He says offers include a severance package based on years of service with the company. He adds that the company hasn't determined how many employees it wants to shed in Florida, but there could be layoffs if not enough of them accept the buyout offers.[2]
The Florida Communications Group said today it is offering voluntary separations, including severance packages, to about half its 1,326 employees, including those with the Tampa Tribune and WFLA, News Channel 8. John Schueler is president of Florida Communications Group, which oversees the operation of the TBO.com, the Tribune, News Channel 8 and other daily and weekly publications such as the Spanish language Centro. Late this afternoon, WMNF spoke with John Schueler about what this all means to the employees, and the audience.[3]
John Schueler, president of Florida Communications Group -- a division of Media General Inc. (NYSE: MEG) in Richmond, Va. -- said the separation packages in some cases include severance deals that could offer a settlement equivalent of up to 39 weeks of pay, according to a report released by TBO.com, the online news outlet for Media General's Tampa area properties.[4]
Group President John Schueler said in an announcement on the Tribune's TBO.com Web site that the buyouts are a way to cut costs significantly in the difficult economic climate of Tampa Bay. Media General, in its latest financial report, said much of the chain's difficulties can be traced to its Tampa Bay media properties.[5] NEW YORK (Associated Press) - About half of the 1,326 employees at Media General Inc.' s Florida properties _ including The Tampa Tribune and WFLA-TV _ were offered buyout packages Monday as the struggling company tries to cut costs and consolidate platforms.[6] Associated Press - April 14, 2008 4:24 PM ET TAMPA, Fla. (AP) - About 600 employees at Media General's Florida properties are being offered buyout packages as the struggling company tries to[2]
Layoffs are possible if not enough employees accept the buyouts, Schueler said. Other media properties included in the buyout offer are Sunbelt Newspapers, Suncoast News, Hernando Today, Highlands Today, and Centro Grupo de Comunicacion. [5] The offer, based on time with the company, cuts across all platforms and properties: theTribuneand portal TBO.com, WFLA, Spanish-language CENTRO, and smaller papers includingHernando Today, Sunbelt Newspapers and others dailies and weeklies. It's not clear how many employees actually will get buyouts, though the notice includes the usual warning that layoffs may occur if enough employees don't accept the offer.[7]
Affected divisions include not only the Tribune and WFLA but also TBO.com, Centro Grupo de Comunicacion, Sunbelt Newspapers, Suncoast News, Hernando Today and Highlands Today. "Everyone who's followed us knows that we've gotten hammered over this part year in the Tampa market because of the real estate-induced recession that continues to deepen across Florida," Morton said during an investor meeting in New York City April 1, according to a proxy filing Media General made with the Securities and Exchange Commission.[4] Some positions are excluded. The report comes just a few days after Media General called the Tampa market its "crown jewel" in a proxy filing relating to its ongoing spat with activist investor Harbinger. Staci adds : As Eric notes, it also dovetails with today's announcement of a 2007 Sigma Delta Chi award in deadline reporting, online, "given to the staffs of TBO.com, WFLA and the Tampa Tribune for their joint 'converged' reporting on storms in central Florida."[7]
In a letter to shareholders Monday, Morton characterized Harbinger's strategy as a "short-sighted, and we believe harmful so-called 'prescription' for Media General." He also disclosed that Harbinger wants Media General to sell off its assets in Tampa, which include The Tribune, WFLA, and.[8] Media General is facing a challenge by shareholder Harbinger Capital Partners, which owns an 18.2 percent stake in the company. Harbinger has been pushing to elect three of its candidates to Media General's board of directors, something Morton in the past has characterized as "hostile." "We are indeed fortunate to have a dual-class stock ownership structure, so that such a short-term and misguided agenda can be seen for what it is, and can be thoughtfully compared to our carefully developed, long-term focus on building long-term value for all stockholders," Morton said. "We do note that Harbinger disagrees with certain elements of Media General's strategic plan," Eric Dao, lead analyst with Glass Lewis said in his report.[4] The company is locked in a sometimes rancorous proxy dispute with Harbinger Capital Partners, a hedge fund that has built up a 21.4 percent stake in Media General and is now asking shareholders to replace three board members with Harbinger nominees. Harbinger has been critical of Media General, saying it has been slow to change its business strategy to meet difficult challenges, and that it needs new voices on the board.[8]
The region, and all of Florida, has been hurt badly by a housing collapse that has spread pain throughout many other industries. Media General is facing a proxy showdown at its annual meeting later this month with Harbinger Capital Partners, a big shareholder group that argues the Richmond, Va. -based newspaper publisher and broadcast owner has not done enough to contain costs.[5]
Schueler denied the offer was a response to continued criticism about the Florida properties' negative impact on Media General's stock price, following an attempt by the hedge fund Harbinger Capital Partners to force three directors onto Media General's board.[1] In March, Media General president and CEO, Marshall N. Morton, cited the poor performance of the Florida properties as the primary reason the company's first-quarter results would be worse than Wall Street analysts expected. He blamed it on the state's struggling economy.[6]
The growing proxy fight between dissident investor Harbinger and Media General has shone a spotlight on the company's Florida news outlets.[1] The hedge fund has recommended selling the platforms as Media General officials acknowledged Florida publishing revenue in February fell 31 percent year-to-year. Harbinger issued a statement saying cost-cutting in Florida would not change its efforts; the vote on directors is scheduled April 24. Paul Tash, chairman, CEO and editor of the St. Petersburg Times, said the news is evidence "this is a very difficult business environment, not just for journalism companies, but for companies generally. (But) Florida has been through rough times before, and we will get through these as well."[1]
Florida Communications Group president John Schueler told Eric Deggans, the media critic at rivalSt. Petersburg Timesthe offer is part of a realignment due to "convergence" across platforms. [7] Learn how to maintain seamless business continuity while migrating from traditional voice mail, to unified communications. The offer is aimed at reducing staffing in a difficult economy while the company reorganizes and consolidates its newspaper, broadcast, and digital operations, FCG President John Schueler said.[8]
FCG has set an April 25 deadline for the buyout offer. Schueler said he could not define a target number of staffers they hope to cut voluntarily.[1] Involuntary layoffs are expected if too few staffers apply for the buyout, though Schueler said no staffers we being specifically urged to take the offer.[1] Schueler said that if not enough workers opt for the buyout, company layoffs may be necessary. Laid-off employees would get the same severance packages as those who choose the voluntary program that management announced to employees Monday morning. Some longtime employees may qualify for up to 39 weeks of pay in their severance packages.[8] The Tampa buyout program includes severance packages that for some employees could go as high as 39 weeks of pay.[5]
Media General (NYSE: MEG) has offered buyouts to half of its 1,326 Tampa Bay-based employees, just weeks after calling the Tampa market its "crown jewel."[7] The Tampa buyout announcement comes 10 days before Media General's April 24 shareholder meeting.[8]
The Tampa Tribune is the largest of Richmond, Va. -based Media General's 25 daily newspapers.[6] Half of the 1,326 people who work at The Tampa Tribune and WFLA-Channel 8 have been offered a voluntary separation package Monday as the media group's parent company looks to trim costs in what it describes as a "difficult economic environment."[4] We're trying to create a media company that is not platform-specific," said Schueler, noting the way WFLA, the Tampa Tribune and TBO.com share a headquarters in Tampa.[1]
Schueler, who reports to Richmond-based parent Media General Inc., said there are no specific figures yet for cost savings or numbers of staff reductions that the company would like to achieve in the voluntary separation program.[8] We will not give that up at any cost." Media General has told Wall Street that it expects to post a 40 cent to 45 cent per share loss on continuing operations when it reports first quarter earnings this week.[8] No minimum has been determined by Media General, but the cost savings needed "are significant," according to TBO.[4]
Media General President and Chief Executive Officer Marshall N. Morton could not be reached for comment Monday. Ray Kozakewicz, a spokesman for Media General, said, "This is completely unrelated to the current proxy fight."[8] Media General joins a growing list of media outlets, especially in the newspaper industry, cutting back on resources amid a softening advertising market, which has been especially difficult in Florida. Colby Atwood, president of newspaper consultant Borrell Assoc., said, "This is part of the general period of adjustment that newspapers are having to go through, and I think it will be awhile before that period is over."[8] Media General is a multimedia company operating newspapers, television stations and online enterprises primarily in the Southeastern United States.[9]
Harbinger has suggested selling the Tribune, which Media General has said would be foolish.[5]
Some FCG employees, including employees of, Tribune copy editors and photographers, are excluded from the buyout program. [8] If a set number of employees don't accept the buyouts, FCG could explore possible layoffs, Schueler said.[4] "We have gone through involuntary separation programs in the past," Schueler said. "We said, 'Why can't we give at least a great portion of employees a choice?' We are looking at this reorganization structure so that is why we don't know numbers right now -- that this will save us X amount of dollars or X amount of people." Eligible employees have until April 25 to decide whether they want to accept the buyout. Those who do would leave the company by June 15.[8]
Employees received notice of the buyout offer Monday, gathering for question-and-answer sessions throughout the day. Staffers working under contract, such as the TV anchors and many producers at WFLA, would be exempt.[1]
Mr. Sullivan -- as a Class A director -- will hold only a minority position on the board and will need to work constructively with the remaining Class A and Class B directors to effect positive long-term change at the company." In a proxy filed Monday with the SEC, Morton said Sullivan's biography of holding three positions as a chief executive were incorrect and instead was only in charge of two, both of which were sold while he was in control. It said his involvement in a group of television stations being sold last year to Clear Channel Communications (NYSE: CCU) should not be attributed to him since he hadn't worked at Clear Channel since 1995. [4] Newspaper analyst John Morton criticized companies that cope with the media industry's deepening recession by cutting staff. "If they hope to achieve a profitable future, they will need every bit of market standing, quality and audience they can maintain," said Morton. "Instead they're thinning staff, reducing the paper which won't work."[1]
The group's properties include The Tampa Tribune, WFLA-TV (NBC) and TBO.com. [9] Schueler said Monday that none of the Tampa operations is for sale and that the staffing reductions are "absolutely not" intended to make the Tampa properties more attractive for a sale. "We have a purpose that transcends the business missions, to help people live their lives better in a democratic society," Schueler said.[8]
SOURCES
1. Business: Corporate: Tribune, Channel 8 offer staff buyouts
2. WWSB ABC 7 Florida - Sarasota, Bradenton, Venice, North Port, Siesta Key Breaking News, Weather, Sports and Traffic on the Suncoast | Buyouts offered to half of Media General's Florida employees
3. WMNF 88.5 FM Community Radio, Tampa
4. Tampa Tribune, WFLA looking to buy out employees - Tampa Bay Business Journal:
5. 'Tampa Trib' Offering Buyouts to Half of All Employees
6. Media General Wants to Cut Fla. Staff
7. Media General Offers Wide Buyouts In Its 'Crown Jewel' Tampa Market; Move Attributed To Convergence - washingtonpost.com
8. Tribune, WFLA Offer Buyouts To Employees
9. Media General new Super Bowl Host Committee sponsor - Tampa Bay Business Journal:
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