- CNTV English - CCTV News

Newsweek deal may bring Chinese investors prestige, not profit

05-18-2010 14:06 BJT

By Bi Yantao

The famous US news magazine Newsweek is up for sale, as it has been bleeding money for years. Losses last year alone were $29 million.

The public in China has been urging Chinese investors to seize this chance to buy an American institution.

True, Chinese investors have plenty of money, but are they capable of buying Newsweek? It's a question of whether it would be a sustainable operation, not raw economic strength.

Newsweek is affiliated with the Washington Post Company. The main cause of the sale is supposedly the poor chances of Newsweek's recovery, but some analysts believe that it's because the company wants to shrug off the burden of the magazine and concentrate instead on securing the future of the Washington Post itself.

On May 7, Newsweek's editor-in-chief Jon Meacham wrote in his magazine that a lot of institutions like Newsweek are facing the same formidable forces, "a difficult business climate, especially in advertising, and changing reading habits." However, many argued that Newsweek's doom was caused by its top management team's poor decisions.

Are Chinese investors capable of buying Newsweek successfully? Could Newsweek come back into profit under a Chinese team? In fact, both questions are two sides of the same coin.

Without a mature theory of journalism and a practical business model, the Chinese will never get Newsweek. Under such circumstances, even if Chinese investors are lucky enough to get it, they won't make it profitable.

Some scholars have even joked that running Newsweek in the Chinese way would only lead to failure and make China a laughing stock.

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program