The Washington Post Company announced on Wednesday that it will be selling Newsweek magazine, which it has owned since 1961. Newsweek lost money the past two years and is expected to do the same in 2010, experts say.
Chairman Donald Graham told Newsweek employees he expects a "rapid sale," the Washington Post reported on their website Wednesday evening, even though no buyer is currently on the horizon. Newsweek was founded in 1933 and currently has a staff of 150, down over 30% the last four years as it has attempted to cut costs.
Newsweek lost $18.1 million in 2008 and over $29 million in 2009. The Post Co. does not expect it will make any money this year either, so it is selling its flagship newspaper. The company has not announced what price it expects to aim for. Magazine revenue has fallen in recent years all across the industry as online content has taken over its consumer base. However, even with the huge wave of internet visitors to its site, Newsweek still generated millions more in printed ads than ones placed on their website.
The Washington Post Company, in addition to owning its daily newspaper namesake, owns Kaplan education company, CableOne (a small cable provider), six television stations, and several smaller print and online publications. The firm recently purchased the investment bank Allen and Co, to help locate buyers for Newsweek.