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Ailing Newsweek Attracts Bids: Report

Washington Post's Newsweek magazine has reportedly received three confirmed bids -- including firms with a well-known ideological bent.
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NEW YORK (TheStreet) -- Washington Post (WPO) has reportedly received three confirmed bids for its Newsweek magazine.

Reports say that those who have confirmed their interest include Ritchie Capital Management chief Thane Ritchie, who attempted to buy the

Sun Times Media Group

last year; private equity firm OpenGate Capital, which bought TV Guide in 2008; and Newsmax Media, which publishes the conservative Newsmax monthly magazine.

Hedge fund manager Ritchie said he submitted the paperwork on his own behalf rather than the firm's,

Bloomberg

reports.

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According to

WSJ

, OpenGate Capital and Newsmax submitted their letters of interest for Newsweek ahead of the Wednesday cut-off time for nonbinding bids.

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Washington Post is considering the sale of Newsweek as the magazine continues to bleed money. According to

Bloomberg

, Newsweek has bled $44 million on an operating basis since 2007 amid plunging print advertising revenue. The magazine reportedly made more in revenue from circulation and sales last year.

Most of Washington Post's revenue currently comes from its Kaplan education business.

It's uncertain how much Washington Post could get for Newsweek, but recent sales of other magazines may provide a clue. Last year, Bloomberg purchased BusinessWeek for about $5 million, and in 2008, OpenGate Capital bought TV Guide for $1.

-- Reported by Andrea Tse in New York

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