Skip to comments.Final Bids for Newsweek Due: Who’s In, Who’s Out
Posted on 07/01/2010 1:14:24 PM PDT by KentTrappedInLiberalSeattle
Final bids are due at 5 p.m. ET Thursday in the Washington Post Companys sale of Newsweek.
A quick FAQ on where the process stands:
>> Fred Drasner, the former owner of U.S. News & World Report whos teamed with Fast Company co-founder Alan Webber and ex-Dow Jones Newswires president Paul Ingrassia on a joint bid for the struggling newsweekly.
>> Sidney Harman, husband of Rep. Jane Harman (D-Calif.), whose plan is to keep Newsweek as a traditional newsmagazine.
>> OpenGate Capital, the company that in 2008 famously acquired TV Guide for $1.00, less than half the cost of a single copy of the magazine.
>> Newsmax Media, the conservative magazine publisher that was bidding for the newsweekly, is out.
Heres its statement:
"Newsmax Media made a serious bid to acquire Newsweek, which we believe is an extraordinary publishing property with great potential as both a print and online product. We will not be participating in the final bid process, but the company remains committed to its long-term objective to diversify and expand into numerous distinct media brand offerings."
Newsmax chief Chris Ruddy recently told Business Insider that he would make Newsweek profitable in 18 months.
>> Thane Ritchie, an Illinois hedge fund manager who was going to use his own funds to acquire Newsweek, is out, according to the New York Times.
>> Philip Falcone, head of another hedge fund, Harbinger Capital, is out too.
Any wild cards?
>> Bloomberg LP. While they havent publicly expressed interest for Newsweek, a source with knowledge of the bidding process said, dont be surprised if Bloomberg gets involved before its said and done. Last year, Bloomberg successfully entered the fray late in the BusinessWeek sweepstakes, and wound up acquiring the magazine.
Earlier this month, there were said to be as many as 12 suitors for Newsweek. Its unclear how many will submit a final bid by 5.
The Washington Post has not revealed an asking price, according to a source with knowledge of sale discussions with potential bidders. Instead, theyre looking for buyers to set it which is not unusual, considering the magazine has lost more than $41 million since 2007, $28.1 million last year and $2.3 million during the first quarter of 2010.
The steep losses also prevent the people who look at these deals from coming up with a multiple to guide them.
"When you're losing that kind of money," one M&A source said last month, "the norms go out the window."
Whens this gonna be over?
According to Folio, an announcement concerning a winner bidder for Newsweek isnt expected for at least several weeks.
Newsweek would be a success if it provided NEWS and FACTS and not propaganda.
OH! Newsweek is in trouble. That is a real shame isn’t it. That left wing rag elicits no sympathy here. If the people who wind up owning it present the same leftist garbage Newsweek has been known for, then I hope to see them in the same situation.
I hear that the daily racing form (Green Sheet) is after them./sarc
Newsweak has about the same number of pages as My Weekly Reader now.
I hereby bid a buck three-fifty (they’re bound to have some usable computer stuff).
I know a fellow who got some telco cabinets cheap and then found out part of the deal required him to remove a tower immediately.Cost him big bucks to win that bid.
Rush could buy it. And make the changes necessary in a few weeks. Mark Steyn could be editor in chief! Ann Coulter could be the personnel dept. babe!
Newsweak could just move to a different location.
Yeah he could, and I'd love to see the liberal heads explode if he did.
But I don't think he would jump on a sinking ship, and printed news magazines of all stripes are sinking.