In the latest sign of the wrenching changes taking place in the traditional media industry, Chicago real estate mogul Sam Zell is taking the Chicago Tribune profit in an $8.2 billion deal.

This media empire of newspapers and radio stations makes its living through a classic catalyst strategy: it entices people to come to its media through plentiful content offered at low (50 cents for a thick daily newspaper) or free (for television) prices and makes profit from advertisers who hawk their companies. It has been a simple yet brilliant money-making machine.

But the Internet has killed it just as surely as word processing killed the typewriter. Google and other Internet advertisers have a far superior technology for advertising. In the latest, Google is charging companies only when consumers buy the product, something that the Tribune and others can’t match.

At same time, traditional media have lost their lock on generating appealing content–there’s so much for free, instantly, on the Internet that it is hard to get people excited about a daily paper.

Of course anyone who hasn’t been living in a cave knows this. Zell must see a way to turn this 159 year old empire into something that can survive in the digital era. But he’s going to have to be a lot more creative than just selling off the Cubs.

I’m sure the Tribune is worth something, but when I value companies I look for assets that provide significant advantages over rivals. I’m afraid that everything that the Chicago Tribune has done very well over the years others can do better.