Newsweek sold to Sidney Harman


Audio gear billionaire Sidney Harman is indeed the new owner of Newsweek magazine. The announcement from the Washington Post Company didn’t mention the price for the money-losing national magazine.

“In seeking a buyer for Newsweek, we wanted someone who feels as strongly as we do about the importance of quality journalism. We found that person in Sidney Harman,” said Donald E. Graham, Chairman and CEO of The Washington Post Company. “He has pledged not only to continue to produce a lively, compelling and first-rate news magazine, but also an equally dynamic – and he intends to keep a majority of Newsweek’s very talented staff,” Graham added. That staff retention had reportedly been the key to Harman winning the bidding.

“Newsweek is a national treasure. I am enormously pleased to be succeeding The Washington Post Company and the Graham family and look forward to this great journalistic, business and technological challenge,” said Harman.
The terms of the asset purchase agreement were not announced; however, The Washington Post Company retains the pension assets and liabilities and certain employee obligations arising prior to the sale. The resulting gain or loss at closing is not expected to be material to the financial position of The Washington Post Company, the company said.

Allen & Company advised The Washington Post Company on the transaction. Harman was advised by Guggenheim Securities, LLC. Covington & Burling LLP served as lead counsel for The Washington Post Company, and Williams & Connolly LLP represented Harman.