Newsweek Sold to Audio Magnate for $1

Sidney Harman assumes magazine's growing losses
By Nick McMaster,  Newser Staff
Posted Aug 2, 2010 3:19 PM CDT
Newsweek magazine is displayed on a shelf at a news stand at South Station in Boston, Tuesday, May 4, 2010.   (AP Photo/Charles Krupa)
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(Newser) – Sidney Harman has agreed to buy Newsweek, Advertising Age reports. The 91-year-old stereo-equipment magnate, who is married to Democratic Rep.Jane Harman, will essentially pay nothing for the magazine—the real cost comes in assuming Newsweek's liabilities, which could top $70 million this year. The Washington Post Co. has been looking for a buyer for Newsweek since May, when it announced the magazine would lose money again this year.

Revenue from Newsweek's ad pages fell 9.6% over the first half of this year. Harman, best known as the co-founder of the Harman Kardon audio company, plans to trim the magazine's staff from 300-plus to 250. The highest-profile departure will be editor Jon Meacham, reports the New York Post. "Meacham has told [Harman] he should look for a new editor and is ready to leave when one is found," says a source.

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