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When Tribune Co. (OTC: TRBCQ) owner Sam Zell took the publishing and media giant private about a year ago, little did he know that his move would completely backfire, leading to a bankruptcy just under a month ago. With way too much debt, one of the nicer possessions in Zell's closet has been the Chicago Cubs. Outspoken billionaire Mark Cuban wants to buy them, but at a discount to Zell's asking price of course.

Cuban's balking at the approximately $1 billion price tag that seems to be the asking price for the Cubbies. Cuban probably is thinking that Tribune and Zell are in such dire straights that he can hold out a bit and score the Cubs for a much lower price -- perhaps $600 million or so. Zell, who is going to have to generate some asset sales regardless of how Tribune navigates through bankruptcy, needs to make this sale. In fact, all of the flash wrapped up in Tribune's assets that don't have a core function in its business probably will have to go. Time for egos to take a vacation.

Tribune Co. was for a time a great collection of media assets. Just like any other newspaper publisher, it was caught off-guard when most news seekers turned to the internet for instant news -- not late news like newspapers generally supply. Local content and freshness has been what has saved many publishers, but who knows if this will last.

For now, Zell's huge misstep with Tribune is going to demand he bite his tongue and rake in some cash. It's nice to know that two outspoken rich guys will be the ones getting to deal with each other soon, and perhaps Cuban will use his blog to chip away at the Cubs' price even more.

General Motors (NYSE: GM) and Chrysler executives have managed to drive their business to the brink of bankruptcy. And the private sector appears reluctant to provide the financing they would need to restructure in bankruptcy. Yesterday, Tribune Co. (NYSE: TXA) went over that precipice without a penny of government money. But GM/Chrysler cannot be allowed to follow that natural path for a failed business -- they need government to save them from the free market.

And so this morning a plan to socialize their losses goes before Congress. It creates a car czar who will administer $15 billion worth of loans. The car czar can demand that GM/Chrysler pay back the loan by March 31, 2009 if they don't come up with a restructuring plan, throwing them into bankruptcy. If the car czar thinks they're negotiating in good faith, they get a 30-day extension. It's not clear what happens if they come up with a restructuring plan by the 31st. A restructuring won't pay back the $25 billion and will probably require even more taxpayer money.

But the plan also requires the car czar to approve transactions above $25 million; it limits executive compensation; demands the sale of their corporate jets; prohibits paying dividends and requires that the government share in future profits and taxpayers be repaid before any other shareholders. So should Congress approve this bill?

In the News:
Stocks to Buy in a Recession
Here are six companies that should hold up well -- and 13 that are on sale. Among them Abbott Labs, Gilead, Google, Apple, Medtronic, CVS Caremark, Wal-Mart, Kraft Foods, Boeing, Broadcom to name a few.
http://www.kiplinger.com/columns/picks/archive/2008/pick1208.htm

10 Fast & Easy Ways to Throw Away Your Money
Getting ahead requires work; falling behind is much easier. Follow these tips to achieve total financial failure.
http://www.bankrate.com/brm/news/Financial_Literacy/investing_money/shrink_bottom_line_a1.asp?caret=114d

General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) soared about 19% each in Frankfurt as Congress is getting closer to approve a bailout for the Big 3 automakers. The White House and Democratic congressional leaders are narrowing their differences and could agree on a deal and bring to a vote soon. Both shares are trading 21% and 18% higher respectively in premarket (8:12 am). By midday, both automakers' stocks were up about 14%.

Other gainers in Frankfurt include oil and gas producers, commodity stocks and financials: Alcoa Inc. (NYSE: AA) jumped 10%, Bank of America (NYSE: BAC) shares rose 11% and Exxon Mobil (NYSE: XOM) gained about 5%. In premarket, AA shares are 6.4%, 5% and 2.4% higher (8:15 am). Commodities, industrials, financial and oil & gas stocks continued to gain well throughout the session with Alcoa up 14% by midday and BAC up 11%. XOM was only up 2.5% thought.

Tribune Co. may file for Chapter 11 bankruptcy protection as soon as this week, according to sources of The Wall Street Journal, as the newspaper industry worsens.

Hartford Financial (NYSE: HIG) shares are continuing their massive upward trend from Friday after the insurer raised its full-year operating profit forecast and said the capital outlook at its insurance units was strong. Shares are up 13.4% in premarket trading. HIG stock had simiilar gains by midday trading.

After shareholders had approved on Friday Bank of America's takeover of Merrill Lynch (NYSE: MER), Merrill's CEO John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million. According to WSJ sources, the company's compensation committee is resisting his request.

The Sam Zell-owned Tribune Co. is selling its prized baseball team, the Chicago Cubs, and opening bids are due today.

Reuters reports that 10 parties have been approved by Major League Baseball to make bids, and the team could fetch over $1 billion. Potential bidders include a group led by taxi tycoon Andew Murstein, including Hank Aaron and Jack Kemp, and the usual band of moguls. But if you want to see some passion restored to baseball, you have to be routing for internet billionaire Mark Cuban, the flamboyant owner of the Dallas Mavericks.

Cuban has the cash and he's the one guy who would probably be willing to commit the resources to make the company a champion for the first time since 1909.

Murstein's, who is vice chairman of Sports Properties Acquisition Corp. (AMEX: HMR) told Reuters that "We're not going to chase the deal. With us, it's not going to be an ego buy."

For disenchatned Cubs fans, a billionaire on an ego trip would be the best buyer.

TheStreet.com's Jim Cramer says massive debt at the newspapers means they no longer work as businesses.

Maybe newspapers don't work as businesses. The shocking 10% workforce reduction announced this week by McClatchy (Cramer's Take) (NYSE: MNI), formerly the best-run chain out there, is a reminder that all of these companies have borrowed too much money and don't generate the cash flow to make it work. McClatchy, with an 8% yield, is showing signs of collapsing under its own weight, something that has been exacerbated by Wall of Shame performer Gary Pruitt, a man who is still, amazingly, the CEO.

But all of this was totally predictable. I have never seen an industry attract so many buyers with so much debt and so little equity.

Take Tribune (Cramer's Take). Sam Zell's a smart guy. He let the newspaper employees do the heavy lifting when he bought the Tribune company. That was so smart. He will be out very little if the deal fails. The workers will be out their retirement money. That was a smart deal -- unless you work there -- but I have spoken against that deal so many times I am sick of talking about it.

McClatchy could have weathered this downturn, instead of -- it is a bit unthinkable, but I think it will happen -- defaulting on its debt, if it hadn't been determined to buy a bunch of properties for much more than they are worth. The New York Times (Cramer's Take) (NYSE: NYT) and Gannett (Cramer's Take) (NYSE: GCI) spent a lot of money, but they didn't have to buy back stock. Gannett's 6% yield isn't tempting in the least.

MAJOR PAPERS:

• The Wall Street Journal reported that a spokesperson for New Corporation (NYSE: NWS) said the company has dropped out of the bidding for Tribune Co's (NYSE: TXA) Newsday. This leaves Cablevision Systems Corporation (NYSE: CVC) as the apparent winner of the auction.
• According to people familiar with the matter, the Wall Street Journal reported that American International Group Inc's (NYSE: AIG) airplane-leasing unit is considering a split from the company. The people said International Lease Finance Corp have grown "increasingly concerned" the company will be hurt by AIG's financial troubles.
• Royal Dutch Shell Plc (NYSE: RDS.A) and Spain's Repsol YPF SA (NYSE: REP) are pulling out of one of Iran's biggest gas projects, the $10B-plus development of phase 13 of South Pars, the world's largest gas field, the Financial Times reported.

WEB SITES:

• Bloomberg reported that HSBC Holdings Plc (NYSE: HBC) set aside a smaller-than-forecast $3.2B for bad loans in the U.S. The bank also said its Q1 profit was higher than Q107.

The Wall Street Journal, which is owned by News Corp. (NYSE: NWS) is reporting that News Corp. has withdrawn its bid for Newsday (subscription required). Rupert Murdoch's News Corp. was unwilling to match the $650 million bid offered by Cablevision (NYSE: CVC). New York Daily News owner Mort Zuckerman had also bid on Newsday.

Besides being higher, Cablevision's bid is likely to face fewer regulatory hurdles, considering Murdoch's and Zuckerman's New York holdings. But, according to the Journal, the bid could prompt some pushback from investors who question the the strategic rational for the deal. Cablevision could bundle Newsday subscriptions with other broadband and phone services it offers in the New York area.

Tribune Co. (NYSE: TXA), current owner of Newsday, recently reported that first-quarter revenue and circulation was down, as newspapers continue to struggle. Cablevision also reported a first-quarter loss of 11 cents per share.

To the surprise of no one, the newly private Tribune Co. is probably going to sell Newsday. The once-venerable New York paper, like all metro dailies, has fallen on hard times and Tribune's new CEO and owner Sam Zell has got a mountain of debt to pay down.

According to The Wall Street Journal . Long Island-based Cablevision Systems Corp. (NYSE: CVC) and New York's Daily News as potential buyers. Rupert Murdoch probably would love to buy Newsday and combine it with News Corp's (NYSE: NWS) New York Post, but I am not sure whether the antitrust regulators would allow it. He is trying to merge everything but the editorial staffs of the Post -- never a hugely profitable enterprise -- with Newsday to save money in a joint operating agreement, the Journal says.

After spending $5 billion for Dow Jones, Murdoch needs to pick all of the low-hanging fruit he can. I expect this deal to happen. Maybe it will lead to others for papers that buyers are eager to unload. Perhaps, Murdoch might buy other Tribune papers from Zell such as The Baltimore Sun or Los Angeles Times. As the Australian tycoon showed in chasing Dow Jones, influence matters as much to him as profits. Gaining more big papers furthers that goal at the expense of shareholders.

Sam Zell formally completed his buyout of the Tribune Company yesterday. It only cost $8.2 billion and months of difficult negotiations -- but now he can go out and get the pitching his newly acquired Chicago Cubs have long needed to win it all. Well, maybe not. Word on the street is that he plans to sell the Cubs and Wrigley Field for a cool billion as soon as he can.

Zell has made it clear that he plans on allowing the various units within the Tribune Company to stand on their own feet. By his count, there are over 60 entities within the company, and each one needs to strike out on its own. As Zell put it, "As I've said over and over again, there are something like 60 entities in the Tribune Co. and I view it as 60 ways to get lucky."

Activision, Inc. (NASDAQ: ATVI): Revised it's outlook upward. Shares moved up to $27.98 from 52-week low of $16.05.

Hologic, Inc. (NASDAQ: HOLX): Company is to be added to the Nasdaq 100. Traded up to $69.75 from 52-week low of $45.88.

Archer Daniels Midland Company (NYSE: ADM): The company is still moving up on strength of legislation of new law to increase ethanol production. It hit $43.37 up from 52-week low of $30.20.

Tribune Company (NYSEL: TRB): Deal to take company private finally closes. Up to $34 from 52-week low of $22.78.

Douglas A. McIntyre is an editor at 247wallst.com.

Tax Change May Mean Delay in Refunds
More than 20 million taxpayers will escape the alternative minimum tax this year, thanks to a stopgap measure Congress approved Wednesday. But lawmakers waited so late in the year to vote that many early filers could have to wait until March to get their refunds. Ordinarily, the IRS starts processing tax returns in mid-January. But the schedule will be delayed this time because the IRS will need about seven weeks to reprogram its computers to reflect changes in the tax law.
Tax change may mean delay in refunds - USATODAY.com


Best and Worst Stocks of 2007
These are the stocks and sectors that came out ahead - and far behind during a very volatile year for Wall Street. Among the winners were Amazon.com, Research in Motion, Merck, McDonald's, Coca-Cola and National Oilwell Varco which was the biggest gainer in the S&P 500 with a 128% gain. The top Nasdaq stock was Baidu.com with a 231% gain. The biggest losers of 2007 were E*Trade which was down 84%, followed by Countywide Financial with a 78% drop. Other losers include Citigroup, Washington Mutual, Pulte Homes, AIG, Home Depot, Sepracor and Starbucks.
2007 stock winners and losers - CNNmoney


Worst States for Speeding
Taking a road trip home for the holidays this year? Be sure to go easy on the gas pedal, particularly if your travels take you up or down the East Coast. Even a first offense can bring a four-digit fine in some parts of the country. Topping the list is Virginia where the maximum fine for a first speeding ticket is $1,350.
The Most Expensive States For Speeding Tickets 2007 - Forbes.com 10 Worst States for Speeding

MAJOR PAPERS:

• The Wall Street Journal reported that in a list released last night by the FCC, Google Inc (NASDAQ: GOOG), Cablevision Systems Corporation (NYSE: CVC) and other "nontraditional" players are set to compete against more traditional wireless companies like Qualcomm Incorporated (NASDAQ: QCOM) and MetroPCS Communications Inc (NYSE: PCS) in the federal government's spectrum auction next month.

OTHER PAPERS:

• Banks that include Merrill Lynch & Co Inc (NYSE: MER) and The Bear Stearns Companies Inc (NYSE: BSC) are reportedly in talks to help bail out struggling bond insurer ACA Capital Holdings, which lost $1B in the most recent quarter, according to two people briefed on the situation and reported by the New York Times; ACA Capital has guaranteed $26B in mortgage securities.
• Executives at Tribune Company (NYSE: TRB) were faced with last-minute questioning from bankers that were reluctant to fund the final portion of the $8.2B deal to take the company private, according to sources close to the company, the Chicago Tribune reported.

WEB SITES:

• Barron's Online's "Inside Scoop" reported that analysts are not convinced that the deal with Citadel is enough to save E*Trade Financial Corporation (NASDAQ: ETFC), as it does not eliminate E*Trade's $12.4B second-lien mortgage exposure, and the company could potentially face further customer attrition, which many think will continue to pressure the shares.