Newsweek, the money pit
The magazine was sold this week, allegedly for a dollar. Here’s why:
Revenue dropped 38 percent between 2007 and 2009, to $165 million. Newsweek’s negligible operating loss (not including certain pension and early retirement changes) of $3 million in 2007 turned into a bloodbath: the business lost $32 million in 2008 and $39.5 million in 2009.
Even after reducing headcount by 33 percent and slashing the number of issues printed and distributed to readers each week from 2.6 million to 1.5 million, the 2010 operating loss is still forecast at $20 million.
The slow, miserable death of Old Media is no surprise, but these numbers are jaw-dropping.