Newsweek sold for $1. Who’s the sucker?

by editor on August 4, 2010

How do you make a small fortune in the magazine business? You start with a large fortune.

That’s what Sidney Harmon, the 91-year old husband of California Democrat Rep Jane Harmon, plans to do now that his $1 bid for Newsweek has been accepted.

The New York Times has the story:

obama newsweek covers

President Obama is worried that Newsweek's new owner might change the magazine's longstanding policy of featuring him on the cover every week

According to several people who have been briefed on the process, Mr. Harman’s bid appealed to Mr. Graham and the Post Company because Mr. Harman has said he would retain a significant number of the magazine’s 325 employees. The financial details of the sale were not known, though one person with knowledge of Mr. Harman’s bid said last week that he would pay $1 in exchange for absorbing Newsweek’s considerable financial liabilities.

Newsweek has struggled through the recession more than most weekly news magazines, losing nearly $30 million last year alone. It was earning that much a year as recently as 2007.

And the longer it remained on the market, the less tenable its financial situation became. It has been an expensive product for the Post Company to produce, with its various international editions and separate back-office positions that were specific to the magazine. Instead of sharing a general counsel and accounting staff with the Post Company, for example, Newsweek has its own employees in those positions.

And if you’ll buy Newsweek, we have a bridge we’d like to sell you.

For god’s sake, man, we just ran through and learned that this site is worth 3,684 times more than Newsweek. And our only liabilities are the lack of a proofreader and receding hairlines.

Source: New York Times

{ 8 comments… read them below or add one }

Shatter August 4, 2010 at 2:13 am

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Your news is better than News Week too!

grayjohn August 4, 2010 at 3:39 am

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Someone bought Newsweek for a dollar? Wow that’s .75 more than it’s worth.

Mistella August 4, 2010 at 6:13 am

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At 4 times earnings, that’s $120,000,001.00 more than it’s worth. Volume – We can make it up in volume. All we need is a bigger truck.

Liberal economics 101 says putting money into something that doesn’t work is a good idea because it “feels” right.

JustAl August 4, 2010 at 7:09 am

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“Who’s the sucker?”
The guy who pays to read the rag, because he paid more than the guy who bought the company!

KimmyQueen August 4, 2010 at 11:36 am

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Really?! LOL hilarious. what a waste of time. Newsweek is not too big to fail it shoul dhave just be left out to die. The employees could and should then find a better job.

Necron_99 August 10, 2010 at 9:48 pm

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If Newsweek actually reported news and published pertinent editorials on the true state of things rather than parroting libtard/prog propaganda and dumbocrat schmaltz like the rest of the lame-stream (MSMBC,CNN,ABC,CBS,NBC,etc.) they might have made a real go of it. But no… they just trundle on down the road of hopey-changey.

lyla75 August 10, 2010 at 8:39 pm

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To quote Lisa Kudrow in Romy & Michele’s High School Reunion, “You paid a whole dollar for that?!”

danybhoy August 11, 2010 at 9:35 pm

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The real cost of the purchase is the debt. Harmon is taking on the debt, I have not heard how deep ito the red they were.

BTW, Sidney & Jane Harmon own Harmon Kardon, who are well known for building stereo speakers. Really good high end speakers actually. But I will pass on them, my next set will be Infanty. Both are good, but if I can avoid giving money to a Demacrat Senator from California, I will do so.

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