U.S. News & World Report and The New York Daily News veteran Fred Drasner and Marc Lasry’s investment firm, Avenue Capital Group, are reportedly leading the bidding war to buy Newsweek magazine. According to Bloomberg, the media executive and Avenue Capital filed bids for the newsweekly shortly before the July 1st deadline. Private equity firm OpenGate Capital LLC, which purchased TV Guide in 2008, previously expressed interest in buying Newsweek, but OpenGate managing partner Andrew Nikou could not confirm the firm’s actions.
West Palm Beach, Florida-based publisher Newsmax Media Inc. and Ritchie Capital Management LLC, who previously attempted by buy Sun-Times Media Group Inc., both made offers early in the bidding process but have since withdrawn.
Documents sent to prospective buyers stated that since 2007 Newsweek has lost over $40 million on an operating basis while print advertising revenue went down 39% to $70.3 million in 2009 from $115.5 million in 2008.
Avenue Capital Group is a hedge fund manager that was founded in 1995 by CEO Marc Lasry and his sister President Sonia Gardner. Avenue Capital’s primary strategies focus on distressed and undervalued securities. In addition, the firm also has Event-Driven, Asia Long/Short and CLO strategies. |
