Analysts say a likely scenario is a spinoff of Tribune's television stations, a move favored by the Chandlers. That would leave Tribune's 11 newspapers a more affordable target for acquisition singly or in bulk.
"It might open the door to dispose of the papers, and you could probably get more if they were sold as individual papers," Morton said.
Until recently, newspapers were considered more valuable in groups, because resources could be shared among them to lower costs. But Sacramento's McClatchy Co., which is buying No. 2 chain Knight Ridder Inc., has changed the conventional wisdom.
McClatchy is keeping the most profitable Knight Ridder papers and selling 12 others. By selling those in ones and twos, it has won higher sums than it paid for all of Knight Ridder. Tribune investors have paid close attention to the McClatchy sales, as have potential buyers of The Times.
"The McClatchy-Knight Ridder auctions have proven there's trophy value to these big properties within local communities, and one has to assume that large shareholders are observing that," said industry analyst Kara Cheseby of T. Rowe Price, which held 4.7% of Tribune's shares as of the end of March.
Last year entertainment mogul David Geffen told Tribune Chief Executive Dennis FitzSimons he would be interested in The Times. He was rebuffed, but the sentiment has spread.
Burkle's Yucaipa Cos. investment firm had bid for the 12 orphaned Knight Ridder papers and is interested in The Times.
"Yucaipa has been interested in exploring the opportunity to purchase newspapers for some time," Burkle said in a written statement.
"The chance for the L.A. Times to be locally owned again is an opportunity that should not be missed."
Burkle and Ueberroth declined to say what recent actions they have taken, if any, and Geffen and Broad declined to comment. But people familiar with Broad's thinking said the billionaire, who made his fortune in home construction, would support local ownership, especially if nonprofit organizations were involved.
Broad broached the subject this week with Chandler advisor Thomas Unterman and was told that nothing would happen before this fall. That is when the second and larger of two investment partnerships that hold the Chandlers' stake in Tribune can be dissolved without a tax penalty.
