Thaindian News

By Madhuri Dey
Aug 3, (THAINDIAN NEWS) The “Newsweek” no more belongs to Washington Post Company. The company on Monday announced that it has signed a contract to sell the proprietorship of the magazine to audio tycoon Sidney Harman. The deal was finalized on Monday after 91-year-old Sidney Harman beat many other top bidders for the magazine to win the deal. The others to participate in the auction were the ex-publisher of the New York Daily News Fred Drasner, owner of TV Guide and OpenGate Capital. The details of the final deal have not yet been revealed to media sources. Some media sources claim that the newspaper publisher is retaining the pension assets, and certain employee obligations of Newsweek.

“Newsweek” that has around 300 employees was put for sale on May this year. On Monday the chief executive of the Washington Post, Donald Graham mentioned to media sources that the company was in search of such a buyer who “feels as strongly as we [Washington Post] do about the importance of quality journalism.”

It was a known fact for long that Washington Post Company’s “Newsweek” magazine was not making profit as it was being expected to make. The magazine that once held a prestigious position was not being able to pull readers for some years now and suffered a $28 million operating loss last year along with some others. This year as well the company lost around $11 million during the first quarter. However, the sell brings to an end the 50 years long ownership of Newsweek by Washington Post. Newsweek was launched in 1933 and was bought by the Washington Post Company back in 1961.