When Tribune Co. emerges from bankruptcy, the new owners plan to name television executive Peter Liguori as the company's chief executive, according to sources familiar with the situation.
Liguori is a former top TV executive at Fox and Discovery. The decision to name him Tribune's CEO ends months of speculation and will usher in a new era for the Chicago media company, which owns newspapers, including the Chicago Tribune, and television stations.
The Federal Communications Commission on Friday signed off on waivers needed to transfer Tribune Co.'s broadcast properties to the new ownership, the final significant hurdle before the company can emerge from its long-running stay in Chapter 11.
While a date for emergence is not set, the new ownership group controlled by senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JP Morgan Chase, will likely take the reins by the end of the year. An initial step for the owners will be to appoint a board of directors. It will have final say on who becomes CEO, but sources say the owners have chosen Liguori.
"The decision has been made," one of the sources said.
Los Angeles Times publisher Eddy Hartenstein has been CEO of Tribune Co. since May 2011. A Tribune Co. spokesman declined comment.
A former advertising executive who transitioned into television more than two decades ago, Liguori, 52, is credited with turning cable channel FX into a programming powerhouse during his ascent to entertainment chief at News Corp.'s Fox Broadcasting. More recently, he served as chief operating officer at Discovery Communications Inc., where he helped oversee the rocky launch of the Oprah Winfrey Network.
Liguori is considered by some observers to be a good fit for Tribune and its new owners. While the company's identity is closely connected to publishing, broadcasting is now its headline business and core profit center. One of Liguori's main jobs will be to help maximize TV ratings, advertising dollars and increasingly important affiliate fees for WGN America and Tribune Co.'s 23 local stations, according to industry insiders.
Liguori "is a very, very smart hire for Oaktree and the guys that run the company because I think what Tribune needs more than anything is somebody to kind of build the brands back and make it a true media company, as opposed to just a collection of businesses," said Jeff Shell, London-based president of NBCUniversal International, who worked with Liguori for six years at Fox beginning in 1996. Shell, whose name had once been floated as a candidate for Tribune CEO, spoke recently about his former colleague's potential value as head of Tribune Co.
Liguori, who could not be reached for comment, became president of Fox's FX Networks in 1998, when it was a small basic cable channel airing reruns of everything from "M*A*S*H" to "Buffy the Vampire Slayer." Elevated to CEO in 2001, he remade FX by offering edgy original programming. Starting with "The Shield" in 2002, Liguori rolled out "Nip/Tuck" and "Rescue Me," creating first-run successes that redefined FX, and perhaps basic cable, in the process.
"FX was a channel, when he took over, a little tiny cable channel losing a bunch of money," Shell said. "He made it into something big by imagining something different, and I think that's what Tribune needs."
Liguori became president of entertainment for Fox Broadcasting Co. in 2005, where he headed program development and marketing. Squeezed out in 2009, he then joined Discovery as chief operating officer, where one of his responsibilities was to oversee the nascent joint venture with OWN.
In May 2011, Liguori assumed the dual role as interim CEO of OWN after inaugural head Christina Norman was forced out at the struggling network. That added responsibility evaporated two months later when Winfrey made herself CEO of OWN. Liguori left Discovery in December and the company eliminated his COO position.
Liguori has been working since July as a New York-based media consultant for private equity firm, the Carlyle Group. He currently serves on the boards of Yahoo, MGM Holdings and Topps.
Tribune Co. has been operating under bankruptcy court protection for nearly four years, having buckled under the $13 billion in total debt it took on after its 2007 buyout. The company's stay in bankruptcy was prolonged by a drawn-out battle for control among creditors.
With the court having finally resolved the major ownership questions, the FCC's decision to grant waivers was the last major piece of the puzzle to come together.
The Federal Communication Commission's Media Bureau issued the waivers of its so-called cross-ownership rules for Tribune's media properties in Los Angeles, Chicago, New York, South Florida and Hartford, Conn.
The waivers allow the agency to transfer TV and radio station licenses in those markets to Tribune's new owners, the group led by Oaktree Capital, Angelo Gordon and JPMorgan Chase.
The FCC granted Tribune a permanent waiver for the company's ownership of the Tribune and WGN-TV. The FCC also gave one-year waivers for the Tribune's ownership of the Los Angeles Times and KTLA-TV Channel 5 and for similar arrangements in New York, South Florida and Hartford.
The company would have one year in those four markets to sell either its newspapers or broadcast stations. But the FCC is in the process of considering loosening its media ownership rules to make it easier for companies to get waivers for newspaper and broadcast station combinations in the top 20 markets.
"We are extremely pleased with today's action by the FCC," Hartenstein said in a statement Friday. "This decision will enable the company to continue moving forward toward emergence from Chapter 11, a process we expect to complete over the course of the next several weeks."
Tribune Newspapers reporter Jim Puzzanghera contributed to this report
rchannick@tribune.com | Twitter @RobertChannick
