Harman Family Distancing from Newsweek
It’s being reported that the family of the late Sidney Harman has stopped investing in the Newsweek Daily Beast Co joint venture that it co-owns with Barry Diller’s IAC/InterActiveCorp, according to representatives of both companies.
IAC reports that it continues to subsidize Newsweek Daily Beast’s operations, and as a result its initial 50 percent interest in the joint venture has grown into a controlling stake.
The Harman family confirmed its ownership stake has been diluted by its decision to cap contributions to the loss-making venture, but did not give a figure. The family plans to maintain a minimum level of ownership in the venture, according to a source familiar with the situation.
As reported two years ago in MMR, The Washington Post Co. wrapped up its auction of Newsweek, selling the ailing newsweekly to audio magnate Sidney Harman on August 2nd, 2010.
Financial terms of the deal were not disclosed at the time. “The resulting gain or loss at closing is not expected to be material to the financial position of The Washington Post Company,” the official announcement said. Losses at Newsweek were expected to approach $70 million in Harman’s first year of ownership.