Thursday, 25 August 2016
Last updated 12 hours ago
Jul 2 2010 | 11:04am ET
Hedge fund Avenue Capital Group has submitted a bid for Newsweek, hedge fund manager Thane Ritchie has not, while the fate of other alternative investment bids is unclear.
New York-based Avenue was one of two potential buyers known to have submitted a bid for the troubled news magazine, which is being sold by the Washington Post Co. The other came from Fred Drasner, a former co-publisher of the New York Daily News and former executive at Newsweek rival U.S. News & World Report.
Avenue’s offer came just a few hours before yesterday’s 5 p.m. deadline for final bids. The firm is no stranger to the publishing world, owning several printing firms and a stake in Men’s Fitness and National Enquirer publisher American Media. It is also likely to wind up with a substantial chunk of newspaper publisher Tribune Co. when it emerges from bankruptcy.
By contrast, the Post said thanks, but no thanks, to Ritchie’s bid. It is the Ritchie Capital Management founder’s second failed bid for a big name in news, following his failure to buy the Sun-Times Media Group last year. The Post also ruled out conservative publisher Newsmax Media.
Private equity firm OpenGate Capital, which owns TV Guide, had also been considering a bid, although it is unclear if one was made. Harbinger Capital Partners was also mulling a move for the magazine.