Newsweek has recorded losses over the last two years and is likely to stay unprofitable this year too. The media company, which revamped Newsweek in May 2009, has hired investment bank Allen & Co as advisor.

The magazine division's operating losses almost doubled last year to $29.3m. The company has downsized its staff strength after cutting its guaranteed circulation to 1.5 million from 2.6 million last year. Chairman Donald Graham has said Newsweek is a lively, important magazine and website, and in the current climate, it might be a better fit elsewhere.