The past few years have been very profitable ones for those who were leaders in the real estate field, both residential and commercial. Now a few of the real estate tycoons such as Sam Zell and Bruce Toll are moving their assets into the newspaper business.

As one who watches the evolution of the media landscape fairly carefully the moves are not logical. However, these are men who have made fortunes not following my advice and probably will continue to do so.

So my question to you readers is, why are real estate guys going into the newsprint business? Are there nuggets that are not being seen?

The new players aren’t all about real estate but have it at the core of their fortunes:
_ Fortress Investment Group, which has billions in real estate and private equity, bought Liberty Group Publishing in 2005 and took it public last October as GateHouse Media Inc., controlling hundreds of small-town papers.
_ Bruce Toll, whose Toll Brothers Inc. is the nation’s largest luxury homebuilder, joined a $515 million deal to acquire The Philadelphia Inquirer and Philadelphia Daily News from The McClatchy Co. last year and became chairman of parent Philadelphia Media Holdings.
_ Billionaire investor Sam Zell secured a deal this month to take Tribune Co., the nation’s second-largest newspaper publisher, private in an $8.2 billion deal. The Grave Dancer, as he is known for his ability to snatch up distressed assets, said he plans to be actively involved in the business as chairman.
Also anxious to get in on the newspaper game, among others, is billionaire developer Eli Broad, who bid unsuccessfully for Tribune with supermarket magnate Ron Burkle. All the outside interest comes at a time when big media companies passed on Tribune.
What changes the wealthy bargain-hunters might bring to the business remain mostly uncertain. via the Houston Chronicle

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