Several groups to bid on Newsweek

Posted by Leah McBride Mensching on June 3, 2010 at 2:18 PM

The Washington Post Co.-owned Newsweek has received bids and interest from several companies and individuals, including Newsmax Media, private equity fund OpenGate Capital, Ritchie Capital Management CEO Thane Ritchie (bidding on his own behalf), Sidney Harman (the owner of a stereo equipment company) and possibly even Newsweek's own editor, The New York Times reported.

Founded by former New York Post reporter Christopher Ruddy, Newsmax Media publishes a politically conservative-leaning magazine and Web site, and confirmed its bid yesterday. He said the bid to buy Newsweek is an effort to "diversify and expand into numerous distinct media brand offerings," and the company would not put its political views on Newsweek. OpenGate managing partner Andrew Nikou told Bloomberg that the firm has submitted a bid. OpenGate also owns TV Guide.

Meanwhile, Ritchie has also submitted a bid; last year he was unsuccessfully in buying the Sun Times Media Group. Harman, age 91 and founder of Harman Kardon stereo company, is interested in a possible bid. There has also been talk that Newsweek editor John Meacham is rallying bidders.

Meacham told Bloomberg yesterday he is continuing to consider options, but would not comment on a deadline.

A "person familiar with the matter" told the Wall Street Journal it is possible that Thomson Reuters Corp may partner on a bid later, although it has not submitted a letter of interest.

The Post Co. bought Newsweek in 1961. It has done well overall, but in recent years advertising has slumped, and print advertising revenue went down 50 percent from 2007 to 2009.