When the Washington Post Co. (NYSE: WPO) announced that Newsweek was for sale, the top-line numbers we pulled out of SEC documents weren’t new but they were stark. The first-quarter earnings released a couple of days later highlighted the rationale. But, based on the sale book and cover letter sent out by banker Allen & Co. and obtained by paidContent, the complete financial picture WaPo is showing potential buyers details an even more dire situation. Some excerpts and financial and headcount charts below:
— What WaPo expects: “Seller contemplates an asset transaction, with the seller to retain all long-term employee-related liabilities as they exist as of the date of sale, including pension and retirement obligations, as well as certain severance obligations.”
— Gerald Rosberg, SVP of Planning and Development of Washington Post Company is leading the sales from WaPo’s side.Tom Kuhn is the banker from Allen & Co.
— The first “non-binding indication of interest” deadline is June 2 by 5 PM ET.
— We all know this but still seeing it in a sales doc smarts: print advertising, circulation, digital advertising & “other” revenue line, all are down drastically, both in Q12010 and for FY 2009.