Tribune takes control of amNewYork

The owner of the Los Angeles Times and Chicago Tribune adds the free daily newspaper to its offerings.
NEW YORK (Reuters) -- Tribune Co. said Thursday it has acquired full control of amNewYork after buying a minority interest from the free daily newspaper's management group led by co-founder Russel Pergament.
Tribune (Charts) - which also owns the Los Angeles Times, the Chicago Tribune and other papers and Web sites - did not disclose financial details. A company spokesman declined to say what percentage Tribune previously owned but said it was more than 50 percent.
AmNewYork competes with Metro, a free daily offered by Luxembourg- and Britain-based Metro International. Metro International also publishes U.S. editions in Boston and Philadelphia.
Several newspaper publishers have started free dailies in the United States to attract more readers and advertising dollars as paid circulation in their core newspapers declines.
Among them are The Washington Post Co.'s (Charts) Express and Belo Corp.'s (Charts) Quick, which complements its paid daily paper The Dallas Morning News.
Tribune said it expected amNewYork, which was launched in October 2003, to be profitable in 2006. It said about 320,000 copies of amNewYork are distributed free from Monday through Friday in and around New York City.
Under the terms of a 2003 agreement, Tribune had rights to purchase the stake after three years. Christopher Barnes, amNewYork general manager and co-founder, becomes publisher, succeeding Pergament, who will take on a consulting role.