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.
snip
(Excerpt) Read more at online.wsj.com ...
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
http://paidcontent.org/article/419-newsweek-by-some-really-crazy-numbers/
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.
” I’m 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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.