Washington Post sells Newsweek to stereo mogul

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- The Washington Post Co. said Monday it has sold struggling Newsweek magazine, which it has published for half a century, to audio industry pioneer Sidney Harman.

The financial terms of the deal were not announced. According to an article in the Washington Post citing an unnamed source, Harman is paying a "minimal" amount of cash but assuming obligations that could cost tens of millions of dollars.

"[Harman] has pledged not only to continue to produce a lively, compelling and first-rate news magazine, but also an equally dynamic Newsweek.com," Donald Graham, chairman and chief executive officer of the Washington Post Co. (WPO, Fortune 500), said in a statement.

Harman, founder and chairman of audio equipment maker Harman International, called the Post a "national treasure." He said he was looking forward to "this great journalistic, business and technological challenge."

In the statement, the Washington Post Co. said that Harman plans to keep "a majority" of Newsweek's staff. Newsweek reported that the magazine's editor-in-chief, Jon Meacham, has already announced he will step down after the deal is completed.

Harman apparently wasn't the only one eyeing the magazine. Other bidders included Fred Drasner, a former executive at U.S. News & World Report and the New York Daily News, as well as hedge fund Avenue Capital Group, which has a stake in America Media Inc., according to Newsweek. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,380.41 263.17 1.63%
Nasdaq 4,258.44 41.05 0.97%
S&P 500 1,886.76 24.00 1.29%
Treasuries 2.20 0.05 2.14%
Data as of 8:02am ET
Company Price Change % Change
Bank of America Corp... 16.21 0.13 0.81%
Facebook Inc 75.95 3.32 4.57%
Apple Inc 97.67 1.41 1.46%
General Electric Co 24.82 0.57 2.35%
Microsoft Corp 43.63 0.89 2.08%
Data as of Oct 17

Sections

Economists concerned over rapidly rising corporate debt levels in China are sounding the alarm, warning that major changes are needed to avoid an increase in "zombie" banks and firms. More

A new Gallup poll shows that one-third of Americans prefer their boss to be a man. More

As North Dakota's oil boom rages on, the droves of job seekers who have flocked there over the past few years are finally starting to move their spouses to the area and settle down. The result? Lots of babies. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.