It sounded like trouble for Tribune Co. Direct from the mouth of new owner Sam Zell, speaking at Newsday offices, a video shows Zell asking, if the Tower weren't there, would you still be able to get a paper out? The crowd of journalists answers yes. "So, what does the Tower do?" Zell asked.

The Tower in question is the Tribune Co. headquarters, Tribune Tower, located on Michigan Avenue. In a two hour, 23 minute address to employees of the Tribune Co. newspaper on Long Island, New York, Zell, who mixed salt with his language said, "I don't think this company has been run particularly well in the past." After allowing the applause from the crowd die down, he noted, "keep in mind how easy it is to piss on someone else.

"I don't think it has been run particularly well because there is a basic question that we are trying to address. This company was run as a media conglomerate. But the question is, is it a media conglomerate or a conglomerate of media companies?" Zell said.

"This company has been run in a hierarchical fashion," he said. So, "what does the Tower do? The answer is I have no fucking idea…"

Noting that the many parts of the Tribune Co. often don't make their budget goals, Zell noted, "The reasons we don't make our numbers is because the numbers are made in Chicago, sent to various places and they are told to perform." Zell went on to say that the newspaper business springs from a market monopoly past that doesn't exist anymore. Zell said the complacency of such monopolies is not commercially healthy when technologies develop to challenge them.

Telling the Newsday crowd he intended to promote local management, he said if he were an employee of Newsday, and a directive came down from Chicago, he would find every way he could to subvert it. The talk, on January 16^th, emphasized Zell's business philosophy of decentralization.

A week later, in a letter to employees regarding Jim O'Shea's departure, Zell said, "I am returning control of our businesses to the people who run them. David Hiller has my full support. He carries direct responsibility for the staffing and financial success of the L.A. Times."

Here is the full text of Zell's letter to employees regarding O'Shea and the Los Angeles Times:

From: Talk to Sam
Sent: Monday, January 21, 2008 10:04 AM
Subject: Jim O'Shea's departure

Everyone,

With all of the media coverage and speculation Jim O'Shea's departure is generating, I wanted to take the opportunity to reiterate what I've been saying since becoming chairman.

I've said loud and clear that I am returning control of our businesses to the people who run them. That means David Hiller has my full support. He carries direct responsibility for the staffing and financial success of the LA Times.

I understand that David and Jim together came to the conclusion that Jim's departure was the best decision for the direction and future of the LA Times. I'd like to thank Jim for is contributions over the years, and I wish him the best of luck.

Sam