And just when the Newsweek buyer speculation seemed to be quieting down, Keith Kelly comes out with a report that Mort Zuckerman, owner of the New York Daily News and U.S. News & World Report, is considering a bid for the magazine.It would make sense: Zuckerman could save money by merging U.S. News and Newsweek, which in the first quarter had a $2.3 million operating loss, a 36% revenue decline and a 38% ad revenue decline.
As for Zuckerman’s track history with buying magazines, Kelly writes:
He sold off Fast Company in 2000 for $365 million, making an enormous profit, but sold The Atlantic Monthly that same year for just $10 million more than he paid for it after subsidizing losses at the magazine for a decade.
Last year, Zuckerman eyed BusinessWeek, but pulled out when Mayor Bloomberg‘s company, Bloomberg LP appeared on the scene and eventually won.
Of course Kelly’s last scoop about a potential Newsweek buyer didn’t exactly pan out.
On May 7, he reported that Mexican billionaire and major New York Times shareholder Carlos Slim was eyeing the magazine. Slim quickly came back with a denial.
But perhaps we’ll have an official shortlist soon enough—the deadline for expressions of interest to Allen & Co., the law firm handling the auction for Newsweek parent The Washington Post Co., is June 4.
Until then, don’t miss our slideshow…
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