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Newspapers Go To Court Over Sale

Dec. 11, 2000-- Managers for Utah's biggest newspaper are now fighting for its future in federal court. The battle over the Salt Lake Tribune went to court today.

The paper's managers and former owners say its proposed sale will stifle its independent voice. News Specialist John Hollenhorst reports from the courthouse.

They want an emergency injunction to stop the sale.

One of the key revelations in court today was a letter, which Tribune people say shows there's a secret deal which threatens the future of the Tribune.

If you ask Denver media mogul Dean Singleton if his purchase of the Salt Lake Tribune will stifle its independent voice, he has a short response. "That's absurd."

But Tribune managers believe he's put their paper on the road to ruin by making a secret deal with their arch-rival, the Mormon Church owned Deseret News.

RANDY FRISCH/S.L. TRIBUNE PUBLISHING CO. "MR. SINGLETON HAS AGREED TO VIRTUALLY EVERY ONE OF THEIR DEMANDS."

Singleton plans to buy the Tribune from AT&T. But the paper's former owners went to court to block it. They argue they have a legally binding option to buy the paper back themselves.

The two newspapers have worked together financially for nearly a half century. But the relationship is increasingly strained because the Deseret News wants to abandon afternoon publishing and compete head-on with the morning Tribune.

In a letter to Deseret Publishing chairman Glen Snarr seeking support for a purchase of the Tribune, Singleton's media group promised numerous financial concessions. It would smooth the Deseret News transition to mornings, give the Deseret News a larger slice of profits and give the Deseret News the right to buy the Tribune later.

RANDY FRISCH/S.L. TRIBUNE PUBLISHING CO.: "WILL MAKE IT VERY DIFFICULT FOR THE SALT LAKE TRIBUNE TO SURVIVE... MR. SINGLETON AGREED TO PUT A FIRST RIGHT OF REFUSAL ON THE VOICE OF THE SALT LAKE TRIBUNE. I THINK THAT'S A CHILLING, SHOCKING DEVELOPMENT."

JOHN HOLLENHORST: "DO YOU BELIEVE THAT THE DESERET NEWS IS IN ANY WAY IN A POSITION TO TAKE OVER AND DESTROY THE TRIBUNE?" DEAN SINGLETON/MEDIA NEWS GROUPSINGLETON: "ABSOLUTELY NOT." LAWYER: "HEY GUYS, I'M GONNA ASK HIM NOT TO SAY ANYTHING."

But lawyers supporting the sale argue, it doesn't make sense for a man to buy a newspaper, and then run it into the ground financially.

So far, no word from Judge Tena Campbell on when, or if, an injunction is coming.


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