Greenberg heads for the LA Times

Renowned billionaire and the former Chairman of American International Group (AIG), Maurice R. Greenberg is preparing to bid for the Tribune Group, parent of the LA times which goes on sale in some time. Reports say the cause for the fallout of the Tribune group might be a major difference of opinions in the boardroom on delicate matters.

The Tribune Group has a worth of $7.8bn and has majors shares in local newspapers, television and radio stations, and also baseball team, but the major reason for so many people bidding for it is the LA Times which seems to have the brightest future.

Other people who are showing interest in buying the group are Eli Broad and also the supermarket investor Ronald Burkle, the pair have teamed up to bid for the whole Tribune Group, also David Geffen, the founder of Geffen Music and co-founder of the Dreamworks film studio, wants to buy the LA Times to improve its arts coverage. Gannett Co., the largest U.S. newspaper owner, also made a preliminary bid for the Tribune group.

Greenberg who is 81 years old, has also shown interest in The Boston Globe and Dow Jones & Co., which publishes The Wall Street Journal. He said that newspaper companies are undervalued assets. A spokesman also confirmed on Monday that the Greenberg has been "exploring several options regarding media companies”, but did not elaborate.

Greenberg’s 38-year reign at AIG insurance was ended by a scandal over accounting policies that had inflated the profits of the company by around 10 per cent.

As readers are increasingly relying on the internet for their news even advertisers switch their spending to online ads. Average circulations of the US's biggest 770 papers dropped 2.8 per cent in the six months on 30 September. So, the newspaper industry is also looking for a saviour and having a net worth of more than $20 billion Greenberg, or Hank as he is now looks like a knight in shining armour for the industry.