Wednesday, 5 May 2010

For Sale: Newsweek

Today, it was kinda announced that the Washington Post is now desperate enough to part with Newsweek. To be honest about this profitable weekly news magazine....it hasn't made a true profit since 2007. And you have to be careful how you announce "profitability" even before 2007 with Newsweek. This year, they will lose $20 million, and 2011 looks just as bleak.

So who would buy Newsweek? Well....it will not be another newspaper chain. You can't find a single chain in America that is making any kind of profit and has the ability to absorb long term losses here.

News media device like Wall Street Journal? Well....no. Those who are standing on their own....like the WSJ folks.....aren't interested in a news magazine with a lousy track record.

So there sits this former giant....waiting for someone to take it to bold new front. It would be curious if someone like Rush Limbaugh came up and offered $100 million....just to see what the Washington Post would do. I'm guessing they want $500 million to part with the company.....and no one is going to offer that unless they have deep pockets to continue the loss trend.

What would a Rush Limbaugh do with the Newsweek magazine? He'd probably take most of the journalists and just give them ten minutes to consider a shift in direction for their writing. They'd walk out....and then a entire new team would walk in. The curious thing would be subscriptions....would they pick up? I'm betting they would.

Could some Saudi prince walk in and buy the Newsweek crew? Yes....that too is possible. Even a Russian oil wizard could buy it.

It might be a curious point in time....where a shift suddenly shocks the world and bold new reporting starts to occur. Well...maybe.