Thomson Reuters said to be interested in buying Newsweek

"We do not comment on market rumours," a spokeswoman for Thomson Reuters was quoted as saying.

Others who may be interested include AllBritton Communications, owner of Politico, and Rupert Murdoch's News Corp, although a spokesman for the latter said "Not us" when asked about being on the short list, the Observer said. Newsweek editor Jon Meacham also said he would consider trying to pull together an offer with investors.

"Of the names that have emerged on the short list so far, Thomson Reuters is the most surprising,” the Observer said. “The company, a huge player in Europe, has only recently stepped up its game in the U.S., and has never before been a contender for a U.S. property with Newsweek's profile.

"Last year, when Bloomberg was about to purchase BusinessWeek, Thomson Reuters threw itself into that bidding very late in the game, joining up with ZelnickMedia to make a play for the business weekly. Bloomberg, a rival to Reuters, ultimately bought the magazine.”

The Observer said that while Reuters is best known for business media it also has been beefing up its consumer reporting, a buildup that would fit in well with a Newsweek purchase. "The company lets finance blogger Felix Salmon do what he likes, and last year it hired Jim Impoco, from Condé Nast Portfolio and The New York Times before that, to beef up its long-form reporting team.

"And what would Thomson Reuters want to do with a magazine like Newsweek? Perhaps the company is just kicking the tires, or maybe there's a plan at work that is more substantive. Last year, Newsweek cut its rate base from 3.1 million to 1.5 million, hoping to serve a far more elite audience. Maybe the people at Thomson Reuters feel like they can have their own version of The Economist.

"Staying competitive with Bloomberg, which has a monthly and just added a weekly magazine to its holdings, could be another reason.”

Bloomberg told The Times last week that it didn't have interest in the newsweekly, but one person familiar with the Newsweek sale said that it may be reconsidering, especially after Thomson Reuters decided to throw itself into the mix, the Observer said. Bloomberg didn't show interest in BusinessWeek until a week before the deadline approached for bids. ■