PaidContent has gotten hold of a Newsweek sales book from Allen & Co.
In The Washington Post Co.’s vision of what a deal would look like, the Post would retain liability of all employee benefits, including retirement and “certain severance obligations.” The company wouldn’t be surprised if a new owner decided to cut the staff.
“Management believes that Newsweek can regain profitability through additional cost savings and revenue enhancements. Potential buyers may realize additional cost savings depending on the nature of their operations.”
The book also hints at the heart of the magazine’s advertising woes. While Jon Meacham’s redesign was conceived to make the magazine appeal to smarter, more serious readers — an Economist crowd perhaps — advertisers haven’t been willing to pony up for those readers. The sales book paints a picture of advertising clients spread too thin across many sectors, “with no one advertiser accounting for more than 6% of revenue.”
The first deadline for potential buyers to express interest in the property is June 2. So far Politico, Reuters, Haim Saban, Mort Zuckerman, Steve Rattner, and Carlos Slim‘s names have all come up.
