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Newsweek – The Biding has come to an End

In its 77th year, Newsweek was purchased by 91 year Sidney Harman from the Washington Post. The price paid? $1 on top of the magazines liabilities. This purchase was made by Harman with the goal of breaking even by 2013. Sidney is the founder of Harman International Industries who manufactures audio products for cars and homes. Though he is known for his genius in audio, Mr. Herman has a love for print and regarded Newsweek as a “national treasure”

Donald E. Graham, the chairman and CEO of Post. Co stated that, “In seeking a buyer for Newsweek, we wanted someone who feels as strongly as we do about the importance of quality journalism. “We found that person in Sidney Harman.” As a part of his purchase, Sidney has agreed to retain most of the employees of Newsweek, and for those he didn’t keep, they would be compensated with severance costs.

Sidney Harman

Newsweek has been slumping in the last few years with a drop of 38% between 2007 and 2009, losing $32 million in 2008 and topped in 2009 with $39.5 million in losses. It is estimated that for 2010, the operating losses will amount o $20 million. As you can imagine, that came with cuts in human capital- 33% to be exact. Also, cuts were made in the printed and distribution numbers from 2.6 million to 1.5 million.

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