Avenue’s ‘Enquirer’ Ties Sink Newsweek Bid

Jul 30 2010 | 12:00pm ET

Avenue Capital Group’s bid for Newsweek magazine has been imperiled by the hedge fund’s ties to the publisher of sensationalist grocery-store tabloid the National Enquirer.

The Washington Post Co., which is selling the august if highly-unprofitable news weekly, is uncomfortable with Avenue’s plans to involve American Media in the running of Newsweek. Avenue’s proposal would have AMI handle advertising and other back-office functions for Newsweek, The Wall Street Journal reports.

But the Post’s concerns were not eased by Avenue’s promise that AMI would have no ownership stake or editorial involvement in Newsweek, and that its back-office functions would be strictly laid out in a service agreement. Avenue owns a 20% stake in AMI, which also published Shape, Men’s Fitness and Star, and holds a seat on its board of directors.

Avenue had widely been seen as the front-runner for Newsweek. But the hedge fund now believes that audio-equipment mogul Sidney Harman is the favorite to buy the magazine.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note