Newsweek's Johnnie L. Roberts reports that Ebony, which was founded with a $500 loan in 1942, is in "big, big trouble" and shopping itself to Time Warner and Viacom.

The magazine is currently run by Linda Johnson Rice, the daughter of founder John H. Johnson and a friend of the Obama family. Revenue is down 32% in the first half of 2009—which is worse than other magazines are faring—and Roberts says Rice has reached out to Time Warner, Viacom, and privately held firms to take it over or buy a piece of it.