Washington Post Blocks Hedge Fund with Relationship to National Enquirer From Newsweek Acquisition

The Wall Street Journal reports that the Washington Post company has balked at selling Newsweek to Avenue Capital.  Avenue Capital has a stake in American Media Inc (AMI) and has suggested that Newsweek share back office tasks with AMI.  AMI owns the National Enquirer which scooped Newsweek on the John Edwards, Tiger Woods and Al Gore sex scandals.  

Newsweek lost $28.1 million last year with much of the loss coming from operating expenses such as manufacturing, advertising and distribution which AMI has an extensive network to support.  

Washington Post corporation is divesting Newsweek and potentially other properties as more than 60% of its revenue comes from Stanley Kaplan Corporation, a $2.9 billion education services colossus.  

More from the WSJ here, http://bit.ly/bSpEDG

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