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THERE ARE STILL MORE PEOPLE WHO WANT TO BUY NEWSWEEK: A new bidder has entered the fray for Newsweek. According to sources, Avenue Capital Group has submitted an offer and is working with a magazine company on a potential deal. Avenue has a stake in American Media Inc., publisher of Star and Shape. The firm joins OpenGate Capital, owners of TV Guide, as well as stereo-equipment honcho Sidney Harman and Fred Drasner, former partner of Mort Zuckerman. According to the New York Post, Drasner is working with Paul Ingrassia and Alan Webber. Insiders said The Washington Post Co. is looking for a deal that would exceed the cost of its close-down scenario of around $45 million (which would include severance payments and benefits). Newsmax and Thane Ritchie are no longer involved in the bidding. The Washington Post Co. is expected to make an announcement about a sale or closure of the title in the next few weeks — meaning there is still plenty of time for a new bidder to sweep in, à la Bloomberg’s offer for BusinessWeek. A spokeswoman at Newsweek declined to comment Thursday.
— Amy Wicks