Republican magazine makes bid for Newsweek

A Republican-leaning news magazine has made an offer for the struggling US publication Newsweek, which was put up for sale a month ago after its owner, the Washington Post Company, failed to stem millions of dollars in losses. Newsmax Media, a Florida-based magazine and website known as one of former Republican vice-presidential candidate Sarah Palin's favourite outlets, announced yesterday that it had made a bid for Newsweek before the 5pm deadline set by the Washington Post publisher's financial adviser, Allen & Company. The firm, based in West Palm Beach, described the move as part of an "objective to diversify and expand into numerous distinct media brand offerings, like any major multi-title publisher". The offer was the only firm proposal made public, although several financiers have let it be known that they are interested. Thane Ritchie, the head of an Illinois investment group, Ritchie Capital Management, told Bloomberg News last week that he was considering making an offer. Ritchie last year tried unsuccessfully to buy the Chicago Sun-Times newspaper. A private equity firm, OpenGate Capital, which owns the Nicole Farhi fashion brand and a listings magazine, TV Guide, has also expressed interest in Newsweek. The presence of at least one offer on the table will come as a relief to staff at Newsweek, which has been in business since 1933 but has found its future in doubt. The Washington Post group, which has owned Newsweek since 1961, suffered losses at its magazines division of $29.3m (£20m) last year and $16.1m in 2008. Newsweek is often said to have a liberal viewpoint, making it a potentially awkward fit for Newsmax, which was set up in 1998 by a conservative author, Chris Ruddy. A former editor of the Times, Lord Rees-Mogg, became chairman of Newsmax in 2000. Newsmax said that if it was successful, Newsweek's "stellar brand and editorial representation would remain distinct from our other brands". It added: "Newsweek would continue in its mission to objectively report the news and provide analysis from a wide spectrum of perspectives." In common with many other mainstream magazines, Newsweek has struggled with an advertising downturn and a migration of readers to digital formats. The magazine cut the readership it guarantees advertisers last year to save money and it is widely viewed as having struggled with competition from rivals such as Time and the Economist.