Chicago Sun-Times and Chicago Tribune Talk Deal, Despite End of Printing Contract

CHICAGO—September 12, 2014—While the printing agreement between the Chicago Sun-Times and Chicago Tribune is set to end next year, the two newspapers do not want to end their marriage just yet, according to Crain's Chicago Business.

Both of the companies are discussing what will happen when the contract expires in May. According to Crain's, the Tribune prints the Sun-Times, and would like to preserve some of the $70 million in revenue it's generating from printing the Sun-Times and distributing it under a separate contract that is slated to end in 2016. According to Crain's, the Sun-Times needs to print and deliver some 150,000 papers daily to bring in the bulk of its revenue.

The two papers, according to analysts, might be better off from a financial standpoint if they merged. "A combination not only would give the newspaper more pricing power with advertisers, it could pare duplicate costs," explained one analyst.

Hal Diamond, a Standard & Poor's Ratings Services analyst in New York who covers the media industry, including newly public Tribune Publishing Co., which owns the Chicago Tribune, told Crain's that newspapers are looking to reduce costs and work with competitors, and said that it makes sense to "consolidate or pool resources wherever possible."

A Tribune spokesman commented on the possible deal in a statement: "Chicago Tribune and the Chicago Sun-Times have had a long and mutually beneficial relationship. We look forward to the opportunity to work together in the coming years."