Tim Sprinkle

Harman/Kardon Founder to Take Over Newsweek?

Why not? At least someone wants it.

As the Washington Post Company prepares to sell Newsweek to the most appealing bidder, it is closely examining an offer from Sidney Harman, the California billionaire who made his fortune selling audio equipment.

... At the moment, Mr. Harman’s offer seems likely to appeal most to the Washington Post’s chairman, Donald E. Graham, and the company’s board because it proposes to keep the vast majority of Newsweek’s 325 employees in their jobs, including the magazine’s top management and editors, these people said.

... But Mr. Harman has put forward the bid that appeals to Mr. Graham’s desire for a deal that is as undisruptive as possible to the magazine’s staff and keeps its editorial direction largely unaltered. One person briefed on the bid said Mr. Harman would retain 250 employees and pay the Post Company $1 in exchange for taking on Newsweek’s considerable financial liabilities. Losses at the magazine could approach $70 million this year, this person said.

Harman's lead in the process is also due in no small part to another bidder's ties to the National Enquirer. Who said the newspaper business had surrendered its snob factor? Good to see that, although publishers are certainly looking to survive, they haven't given up their ideals.