U.S. media company Hearst Corp. may have a good reason for choosing an investment banker as its new chief financial officer: it has a US$1 billion "war chest," the New York Post reported, citing "insiders" as sources.

Hiring Mitchell Scherzer as the new CFO signals Chairman and CEO Frank Bennack's "more aggressive acquisition strategy" as he seeks new revenue streams.

Despite the corporation being debt-free, maintaining profitability and revenues of more than $7 billion, Hearst's newspapers have experienced difficulty in the past year. The San Francisco Chronicle was nearly closed earlier this year, while the Seattle Post-Intelligencer switched to online-only. However, Hearst's magazines, which include Cosmopolitan and Good Housekeeping, have fared better than those at Condé Nast or Time Inc.

According to paidContent, Hearst will likely look to buy technology firms over editorial properties. It has already invested in E-Ink and an e-reader with FirstPaper.