Washington Post Co said on Wednesday it is exploring a possible sale of its magazine Newsweek after sustaining losses for two years.

The education and newspaper company retained Allen & Co to help with the sale.

Washington Post Chairman Donald Graham said in a statement: The losses at Newsweek in 2007-2009 are a matter of record. Despite heroic efforts on the part of Newsweek's management and staff, we expect it to still lose money in 2010. We are exploring all options to fix the problem ... In the current climate it might be a better fit elsewhere.

In December the Newsweek division sold Budget Travel magazine to Fletcher Asset Management for an undisclosed sum.

(Reporting by Jennifer Saba, editing by Gerald E. McCormick)