Washington Post Sold Newsweek for $1

NEW YORK (TheStreet) -- The Washington Post (WPO) revealed Wednesday that the purchase price in its sale of Newsweek magazine this summer was just $1.

In a Form 8-K filing disclosing the details of its sale of the magazine to stereo equipment magnate Sidney Harman and Harman Media, Washington Post said the transaction involved the dollar in cash along with assumed liabilities. Later in the filing, the company puts Newsweek's total liabilities as of July 4 at $47.3 million.

The deal also calls for Washington Post to reimburse Harman for $10 million worth of liabilities as part of a "post-closing purchase price adjustment" within 60 days of the transaction's closing, which occurred on Sept. 30. Washington Post announced plans to sell Newsweek on May 5, and reached its agreement with Harman on August 2.

Washington Post purchased Newsweek in 1961. At present, the newsstand price for a single issue stands at $5.95.

Shares of Washington Post closed Wednesday at $403.24, down 1.1%. Year-to-date the stock is down 7.4%. The company is expected to report its third-quarter results on Nov. 5.

--Written by Michael Baron in New York.



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