Newsweek bidding:
Then there were three
Drasner, Harman and OpenGate Capital take the lead
By Louisa Ada Seltzer
Jul 1, 2010
In the hours before bids are due for Newsweek, the list of those who are dropping out is growing faster than the list of committed bidders.
As of this morning, just a few bidders were still expressing interested in the long-struggling newsweekly, which the Washington Post put on the block earlier this year after several failed attempts to revive it. Bids are due by 5 p.m. tonight, and it's expected that one or two surprise bidders could still emerge, much like Bloomberg did for Businessweek last year.
According to various reports, Newsmax, a conservative magazine, and hedge fund manager Thane Ritchie, who had an unsuccessful bid for the Chicago Sun-Times, dropped out of the bidding yesterday after expressing initial interest.
A third bidder, Harbinger Capital head Philip Falcone, decided to fold earlier this week.
That leaves at least three serious suitors, according to the scuttlebutt, and the one getting the most ink is a group led by Fred Drasner, a former Mort Zuckerman partner who was co-owner of the New York Daily News as well as the Washington Redskins. He's teaming with former Dow Jones Newswires president Paul Ingrassia and Fast Company founder Alan Webber.
Another bidder is Sidney Harman, the 91-year-old founder of Harman International Industries, who told the New York Times that he will push to acquire the magazine even though, "I wish it were healthier."
The third bidder is OpenGate Capital, which acquired TV Guide last year for a mere $1 and would likely be seeking a similarly bargain-basement deal for Newsweek.
The newsweekly, which has lost a reported $44 million over the past two years, has cut its rate base and laid off dozens of employees in an effort to staunch the bleeding, but the Post Co. eventually decided it could no longer sustain the losses.
Newsweek's ad pages were off 20.6 percent during first quarter, according to the Publishers Information Bureau, compared to a 3.2 percent dip for rival Time.
The Post Co. is hoping to reach a deal for the magazine by mid July.
|
|
|
