TV Guide Buyer Looking for Variety?

Variety (magazine) (Photo credit: Wikipedia)

The New York Post reported today that Los Angeles-based private equity investor Open Gate Capital LLC, which paid $1 to purchase a distressed TV Guide in 2008 (see "TUOL" post 6/3/10), may now have Variety, the entertainment industry bible owned by Dutch media conglomerate Reed Elsevier, in its sights.

Reed Elsevier in March offered the troubled Hollywood trade paper for sale. A year ago, Detroit Internet media mogul Jay Penske was rumored to be in line to acquire Variety (see "TUOL" post 4/29/11). The Post story reports Variety's price tag could range from $10 million to $30 million.

Open Gate Capital apparently has pulled out of the running to acquire the TV Guide cable channel from the Lionsgate movie studio and co-owner One Equity Partners. The Post article suggests Discovery Communications may have an interest in buying the TV Guide Channel.

Check your listings for updates on this story.

Suitors Line Up to Buy Fading Newsweek

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Bloomberg News and The New York Times today provided the scorecard of potential buyers who submitted bids before the deadline imposed by The Washington Post, which is desperate to unload financially troubled Newsweek magazine.

Among the purported bidders is the Los-Angeles based private equity fund OpenGate Capital LLC, which purchased TV Guide for $1 in 2008, and hedge fund manager Thane Ritchie of Richie Capital Management LLC, who stumbled in his bid to acquire the Sun Times Media Group in 2009. Also in the running is Newsmax Media, which fronts a conservative publication and Website. The New York Times reports that 91-year-old Harmon Kardor founder Sidney Harmon also was readying a bid. Newsweek managing editor Jon Meachem, who scoured the countryside for investors to help him submit a bid, was quiet as the Post deadline lapsed yesterday.

Newsweek has bled $44 million since 2007 (see "TUOL" post 5/7/10). Last year, advertising revenue for the newsweekly sank 39 percent to $70.3 million from $115.5 million in 2008.