Mergers and Acquistions News
Categories: Media & Information Services
August 3rd 2010, 16:18PM
Stereo magnate Sidney Harman will acquire Newsweek, it has emerged.
According to Reuters, the Washington Post Company will sell Newsweek to 91-year-old Harman, who has said the majority of the magazine's 350 staff will stay in their jobs, although current editor Jon Meacham will leave.
It is also expected that the businessman will allow a couple of years for the title to reverse losses.
The deal was settled after Newsweek was put up for sale via an auction, in which Mr Harman competed with publisher Fred Dasner and OpenGate Capital, who own TV Guide, to secure the news weekly.
Financial details have not been published but it is thought that the Washington Post Co will keep pension assets, liabilities and some employee obligations.
The company has finally let Newsweek go after years of losses. Figures posted for 2010's first quarter showed the magazine lost almost lost close to $11 million (£7 million) and a circulation of more than three million 20 years ago has dropped to 1.9 million.
The emergence of blogs, other digital media platforms, and fierce competition has dogged the title.
Mr Harman told Reuters: "I think it is conceit for me to offer you or anybody including my comrades at Newsweek a fully articulated vision.
"The role of Newsweek ought to be to look at this complicated world and make sense of it every week."
The magnate added that enterprise and investigative journalism may be developed to invigorate the publication.
Newsweek was founded in 1933.
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