Over-Zell-ous? Real Estate Mogul Felled by Media Biz

Newspaper Industry

In an interview with Conde Nast Portfolio Magazine at a media conference last month, Zell said that these days, newspapers could no longer afford to operate as "charitable trusts."

"If you don't want to be a charitable trust, then you've got to focus on producing a return for investors' capital," he said, "and it's just that simple."

It's that outlook that prompts criticism from journalists and media watchers like Ken Auletta, a columnist for the New Yorker magazine.

The problem with Zell, he said, is that he just doesn't appreciate journalism.

"One had a sense in listening to him that he didn't think he was in the news business. He could have been in the cattle futures biz or the manufacturing of beds," said Auletta, who sat in on the Portfolio interview.

"Journalism is not an endeavor just to maximize profit," he said. "It is an endeavor that is protected by the First Amendment in order to provide information to the public that they need to make decisions in a democracy."

Zell, meanwhile, appears resolute in the face of both criticism and strong financial headwinds.

The bankruptcy filing, he said in Monday's Tribune statement, "will take pressure off our operations, so we can continue to work toward our vision of creating a sustainable, cutting-edge media company that is valued by our readers, viewers and advertisers, and plays a vital role in the communities we serve."

ABC News' Brad Martin contributed to this report.