Newspapers take P1 action to "reverse revenue declines" amidst nervousness over deal completion*

We'll see Tribune-wide P1 and section front ads soon as part of the revenue-generating initiative announced today by Tribune Publishing president Scott Smith. (LAT's Hiller made a similar announcement last week.)

He writes in his memo that he "made the decision to expand section front advertising, including on the front page, weighing the interests of both readers and advertisers in the context of our overall goals. Readers highly value display advertising in their newspapers."

Meanwhile, Tribune shares are trading significantly lower than the $34 offered in the Zell deal. Reuters reports "... as Tribune approaches the second stage of its deal, concerns have been raised about whether it will generate enough cash flow to meet a leverage test detailed in its deal agreement or if Zell will seek to renegotiate the terms."

Hope the ad sales reps can sell gazillions of dollars of sharp, classy but unobtrusive one-an-a-half inch ads "readers will highly value".

*UPDATE: Chicago Tribune and Los Angeles Times editors oppose Page One ads. "This would be a huge mistake that will penalize the reader," said LAT editor James O'Shea.