Skip to comments.Newsweek Deadline Draws Near (Chris Ruddy may bid - Dinosaur Media DeathWatch™)
Posted on 05/30/2010 6:02:57 AM PDT by abb
A private-equity firm and a publisher of a right-wing magazine are among prospective buyers expected to enter the first round of bidding for Newsweek magazine.
OpenGate Capital, the investment firm that owns TV Guide, plans to formally declare its interest in acquiring Newsweek before Wednesday's deadline for nonbinding bids, according to managing partner Andrew Nikou. Christopher Ruddy, publisher of the conservative monthly magazine Newsmax, said he also plans to bid.
Thomson Reuters Corp. is unlikely to submit a letter of interest by next week's deadline, but the financial news and information company could partner on a bid later in the process, according to a person familiar with the company's thinking. Media mogul Haim Saban initially expressed an interest, but it is unclear if he will enter the fray. A spokesperson for Mr. Saban declined to comment.
Meanwhile, Bloomberg LP, Fast Company publisher Mansueto Ventures and Mort Zuckerman, owner of U.S. News & World Report, all said they are not interested.
Newsweek owner Washington Post Co. recently said it would try to sell the unprofitable magazine and hired Allen & Co. to shop it. The investment bank has circulated a summary of Newsweek and details about the bidding process, which requires prospective buyers to submit a purchase price and financing plan by 5 p.m. EDT Wednesday.
Post Co. indicated in the summary sent to potential buyers that the company would assume all long-term employee-related liabilities, including pension and retirement obligations, as of the sale date. It also indicated in the summary it will assume "certain" severance obligations. A person familiar with the matter said Post Co. has offered to cover severance costs for up to 200 Newsweek employees not retained by the new owner. Newsweek has 379 full-time-equivalent employees.
(Excerpt) Read more at online.wsj.com ...
Good move by Ruddy. He’ll get a bunch of Newsmax stories out of how the Obama admin blocked his purchase of the magazine.
If Chris Ruddy buys it, will it still be “dinosaur media”?
And Media is not dead ... it’s merely morphing [for those who are cheering].
Wow! Did not know this. Do you have a link?
Rush should just buy it and turn it into the PREMIER Conservative magazine in the World.
Rush H. Limbaugh - Publisher and Editor in Chief
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Yes. Seems like a logical move for Ruddy. And the Newsweek banner.
Bo in action.
LOL...they didn't try to bar the sale yet, but there's no way they'll let a conservative entity buy up one of their most outspoken allies and propaganda arms. It may not be done directly through gov't force, but more likely through their allies in the media.
It will be the kind of stuff that's perfect for Newsmax stories!
Jim Robertson should buy it and call it NewsFreep.
Pray for America
Whoever buys it in the end...ends up with a magazine that cannot sustain a profit. The only plus is that you have a dozen reporters who can appear on Sunday talk shows for MSNBC or CNN....and talk. Basically, you run a stable of horses who can’t run with real racehorses but they are happy to be just marginal horses.
In fact, I would even say this....I could open a new magazine called Newsweek II...with all college students (no one over the age of 24) and carry the same subscription level and profit margin. At least with my concept....I’d be paying out half the salary that they pay today, and I could actually say I’m making a profit.
The offices will need to be disinfected, if not outright incinerated.
The 4th estate is a 5th column.
Why would Chris Ruddy buy Dinosaur Media? Does he want to lose money?
I think some Freepers don’t know that media is not dying.
FTC protects journalisms past
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This Is Where CNN Makes Its Money
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IPad to Rescue Media From Penny-pinching Web Surfers?
How do you spell chutzpah?
Fit to Print Filmmakers Forge Ahead
The Social Subscription
Mr Ruddy, I’ll buy a subscription. ...go for it.
Wouldn’t that be a total BOL for our side if Ruddy buys Newsweek?
Big Time “negative net worth”
I can just see the reaction of the NY Times - MoDo, Frank Rich, Kristof.
I submit that the Newsweek staff would certainly do the same thing, reacting with horror at the prospect of a news organization having to report anything... gasp! ... conservative. I would hope anyone who buys them says "buzz off, I'm not signing anything. In fact, go find another job. I bought it for the brand, not the staff of leftist jerks that ruined it in the first place."
“I can just see the reaction of the NY Times - MoDo, Frank Rich, Kristof.”
Their hysterical reactions would be better than any comedy show on TV.
“I submit that the Newsweek staff would certainly do the same thing, reacting with horror at the prospect of a news organization having to report anything... gasp! ... conservative. I would hope anyone who buys them says “buzz off, I’m not signing anything. In fact, go find another job. I bought it for the brand, not the staff of leftist jerks that ruined it in the first place.”
You are absolutely correct. If any conservative buys Newsweak, the NY Slimes, Compost or any dying fishwrap or magazine, the new owner/s should fire everyone the day they take over the dying organization.
Who knows? If they stop being anti-American and become pro-freedom, maybe people will start buying Newsweek.
“Big Time negative net worth
BofA and some of the local banks holding the mortgages on super McMansions in the wino country area after zero payments from the overextended former owners for 2-3 years, will be having fire sales on these properties.
They only want the original mortgage price plus any seconds, thirds and credit lines on each McMansion.
Would you be interested in buying a couple of these?
“They only want the original mortgage price plus any seconds, thirds and credit lines on each McMansion.
Would you be interested in buying a couple of these?”
Sure, if a current appraisal is for 3 million, I would offer them 1.5 ;-)
“You are absolutely correct. If any conservative buys Newsweak, the NY Slimes, Compost or any dying fishwrap or magazine, the new owner/s should fire everyone the day they take over the dying organization.”
Even if they fired everybody, are there enough doctors & dentists to break even?
I think not ;-)
Newsweek has approximately 427 full-time employees as of Dec 31, 2009. If Bloomberg buys it, that might go down to 27
The doctors and dentists out here in Californicator land haven’t paid for a subscription to NewsWeak or Slime for a decade or two.
IIRC you are correct. Usually, Nat. Geographic, or U.S. News & World Report ;-)
It’s obvious that as a going concern, there is little hope. The only ‘value’ left is the brand, Newsweek - the accounting term is goodwill.
That’s always a swag number, anyway. Or has that been completely ruined?
I know industries shift and change to meet the marketplace. They always have and always will in a free economy. And it’s what I do doe a living.
That’s why I say that Freepers who allude to Dinosaur Media are illl informed.
Newsweak/Slime and others you mention are sent free to the doctors, dentists and other medical providers we know, and between my wife and I, that is a lot.
I’m sure that each of these medical providers, who get free copies are carried as subscribers. Most of the providers or their officed managers throw away the subscription reminders, and the worthless magazines keep on coming to their offices.
” Newsweak/Slime and others you mention are sent free to the doctors, dentists and other medical providers we know “
I wondered about that.
” Im sure that each of these medical providers, who get free copies are carried as subscribers.”
” Cook the Books 2...the sequel “ ;-)
Free NY Slimes and San Fran Gay Chronicles show up daily at many of medical offices. The complex where my wife works, each morning has stacks of these unwanted papers piled up in the entrances closest to the driveway. The delivery people just drop them on the sidewalkd at the three entrances for the cicular driveway.
Each morning the maintenance people pick them up and throw them into one of the big blue recycle containers.
I don't think he wants to actually buy it; I think he wants to be muscled out of the bidding so he can report on it. JMHO.
They’re pretty screwed. 90% of their revenue is through their print property. Either advertising or circulation revenue. Their online advertising is only 5% of their total revenue and 10% of their expenses.
Their most valuable asset is the name Newsweek because it will still attract some advertising and circulation revenue. It can always be sold to advertisers as a cheaper alternative to Time magazine.
But the operations end is not sustainable and needs to be absorbed by Bloomberg and fire 90-95% of Newsweek’s current employees.
The decline in newspaper advertising eased in the first three months of 2010, but the industry exited the quarter with less than half the revenue base it had in the same period in 2005.
Print ad sales for the industry skidded 11.4% in the first three months of the year to $5.2 billion, according to data released yesterday by the Newspaper Association of America. This compares with $10.3 billion in the same period in 2005, reflecting a decline since then of 55.3%.
While the sales slide in the first period of this year was not as severe as the 29.7% dive in the same quarter a year ago, it nonetheless ranks as the third worst Q1-setback setback on the books. The long-term print revenue trend is illustrated below.
The first-period plunge marked the 16th consecutive quarter of declining print ad sales a trend that commenced, significantly, in April, 2006, or well before the global economy began to crumble.
Print advertising matters because it traditionally accounts for three-quarters of the revenue base at most newspapers, with circulation and digital media making up the rest.
The extent of the long-running decline in print advertising the core business at every newspaper can be illustrated by comparing sales in the first quarter of this year with sales for the same period in 2005, when the industry posted all-time high sales of $49.4 billion. Here are the stark results:
As you can see in the table above, the three principal classified categories were hammered the hardest: auto, real estate and employment. While these three verticals were at ground zero in the economic firestorm, the categories are unlikely to recover fully in the future, as advertisers in the respective categories migrate to free or low-priced websites ranging from Craigs List to Zillow to Cars.Com.
Though hit less than the classified categories, retail and national advertising both have suffered profound contraction.
While print at the moment is far from dead, more than half of newspaper readers are over the age of 50. Because newspapers have failed to attract young readers to the degree they historically attracted their elders, they will have to change almost everything about their businesses if they have a hope of sustaining their valuable franchises.
The less-awful sales in the first months of this year gave publishers the gift of a bit more time to fundamentally reposition their businesses. But there is nothing in the first-quarter numbers to suggest that the storm for newspapers has blown over.
“Each morning the maintenance people pick them up and throw them into one of the big blue recycle containers.”
It’s really a shame that trees must die to print their garbage.
Maybe not for much longer ;-)
There was a big stink a couple years ago when several newspapers were found by the ABC (the Audit Bureau of Circulations) to be inflating their paid subscription numbers by including all the freebies and, IIRC, returns.
Maybe some magazines have been doing the same thing.
If it weren’t for hotel rooms, USA Today would have to shut down half their press run.
But seriously folks, why would a conservative organization want to buy a rag like this anyway? The brand itself is already poison, the weekly news magazine model is dead (even dailies are publishing day-old news everyone has already seen), and the new owners would have to fire almost everyone in the organization? So what's left? Some commercial real-estate, a giant printing press, and established distribution? Commercial real-estate is collapsing, and there's a rapidly growing surplus of giant printing presses. I guess the distribution contracts might be worth something if you could come up with something that you could sell and make money at, which is extremely doubtful, since print media is dying.
So, I say let some lib organization p!ss their money away on buying this dinosaur!
Two angles, one markets....... when things get this out of whack those whom step in will win in the long run. Now is the time to buy so many things if you are liquid enough to do so. The other is can you afford to buy something as a ‘wash” but you can gain something from the power that you have. Owning a media outlet such as Newsweek gives you a BIG voice. That may be worth the price alone for Ruddy.