Since its founding in 1933, Newsweek has navigated a turbulent history of controversy.
After enduring years of financial hardship, the magazine crumbled in 2008, was sold by the Washington Post Co. in 2010, and changed hands again in 2013 from Barry Diller's IAC to IBT Media. Ex-IBT Media executive Dev Pragad now claims to be the current Newsweek owner.
An IBT investigation reveals that Pragad's claim of ownership of Newsweek comes from a temporary arrangement he orchestrated in September 2018. Questions now loom over his legal ownership.
The agreement, drawn by Pragad's lawyers, called for his newly created company (NW Media Holdings Corp.) to pay IBT Media Inc. $5,000 for Newsweek, despite it being valued at $2.1 million at the time. According to IBT CEO, Etienne Uzac, it was a temporary agreement between trusted friends formed at the Olivet church.
However, the $5,000 payment was never made.
In 2021, Pragad distanced himself from Uzac. A year later, he left the Olivet church and ran away with Newsweek, claiming ownership and threatened anyone who went after him.
Johnathan Davis (also a shareholder of NW Media Holdings and formerly a shareholder of IBT) filed a lawsuit against Pragad in July 2022, claiming that Pragad had sent the following threatening text messages to a mutual friend:
"Don't engage if you don't know how to deal with a nuclear bomb. If it goes off, it will nuke everyone."
"I'm so close to congress and senators and they love what I'm doing at Newsweek. They are all watching so closely along with world leaders."
"In fact it won't even be a fight. I do sit in an extremely powerful position [...]"
Pragad's Deceptive Tactics and Misleading Claims
Pragad was hired by IBT Media's UK affiliate after finishing his studies in 2009. After several years, he was promoted to CEO of IBT Media's UK affiliate.
When Uzac experienced legal troubles with the New York DA in 2016 for misappropriating loans for computer servers and using them to pay salaries at IBT and Newsweek, Pragad set in motion his plan to get Newsweek by claiming the DA wanted Uzac out of Newsweek and Pragad in as owner.
This, according to Uzac, was a lie.
"The DA never told Dev to own Newsweek. That was confirmed recently by one of the former Assistant District Attorneys working on our case,'' Uzac says.
IBT invested over $10 million into Newsweek between 2013 and 2018, helping to rebuild its website, editorial team, and print operations.
These investments grew Newsweek's monthly unique visitors from 200,000 to over 6 million and reestablished its print edition.
Under Pragad's leadership, he strategically weakened IBT by transferring key resources and personnel to Newsweek while Uzac was away.
This included moving top reporters, editors, and resources from IBT and other related sites to Newsweek, enhancing Newsweek at IBT's expense. Pragad is accused of creating a "bad company" (IBT) and a "good company" (Newsweek), with IBT shouldering costs while Newsweek reaped profits.
Pragad essentially abandoned IBT, leaving it in a weakened state while focusing on growing Newsweek using IBT's assets and personnel.
"There are no outstanding claims against Newsweek or Pragad by IBT or Etienne Uzac," said Newsweek representative Ben Billingsley in a statement to IBT. "To the contrary, Newsweek Media is suing IBT, Uzac, and others for the millions of dollars owed to it."
Billingsley continued: "IBT's attempt to undo its sale of Newsweek was completely rejected by the New York Supreme Court, and on appeal, the lawsuit has been dismissed in its entirety. As the attached decision states, the appellate court expressly found that the transaction is 'enforceable.'"
In response, Uzac told IBT reporters, "We have only begun asserting our rights in the courts. A lot more is coming their way, and I cannot wait to see the results. At the end of the day, I believe Pragad knows full well he is not the legitimate owner of Newsweek," Uzac said. "The truth always comes back to catch up with you."
Pragad Pays Himself $3.8 million
Beyond dismantling IBT, Pragad was accused by Davis in a lawsuit of pocketing millions in salary and bonuses without Board approval, blatantly violating company by-laws and neglecting his obligations to Newsweek. The lawsuit ended after Pragad and Davis made an undisclosed settlement.
"In early 2021, Pragad began to award himself a series of escalating salary increases, bonuses, and other compensation benefits that were not authorized by the Board," the lawsuit said. "This compensation is ultra vires, a product of conflict of interest, excessive, a product of bad faith, and a waste of corporate assets."
Pragad set the terms of his contract, through the backdoor with HR, the lawsuit alleges. It stated that if he was terminated for "any cause," he would be entitled to a severance payment consisting of 12 months' salary and at least 75% of his bonus—which, based on Pragad's 2022 salary, would be over $3,800,000. It was also stipulated in a separate letter, that if the company so much as proposes a change in Pragad's compensation to which he does not agree, he would be entitled to his entire severance payment.
Uncertainty over Newsweek Ownership
Accusations of financial misconduct, manipulation, and betrayal paint a turbulent picture of Pragad's self-proclaimed rise to power. While legal rulings have so far supported Pragad's claims, the ongoing litigation and vocal opposition from former colleagues like Uzac suggest that this saga is far from over. The outcome of these legal battles will ultimately decide not only the ownership but also the future direction of Newsweek.
