In December 2012, with 1.5 million subscribers, the reputable longtime news magazine Newsweek published its last print issue and went 100% digital after 79 years in print. The latest scoop is that IAC, the brand’s current owner is indeed looking for buyers.
In a statement released at a technology industry conference, IAC Chair billionaire Barry Diller said that his media company is on the lookout for buyers for Newsweek. In a recent interview on television, Barry Diller was also heard to comment that purchasing Newsweek was a mistake.
Rumor confirmed
Prior to this confirmation, unnamed sources revealed to the media that the news magazine was up for sale. The parent company IAC/InterActiveCorp was reportedly seriously considering selling the news magazine once again. Just a day ago, there was no confirmation from Newsweek or the IAC spokesperson on whether the circulating rumors have any substance until Diller expressed his intention to sell.
The Newsweek-The Daily Beast merger did not succeed as expected. Chairman Barry Diller said that they want to focus on The Daily Beast once again because it has “an unlimited future” and that was where it all started for the media company.
Internal memo leak
An internal memo that was circulated online on Wednesday from Tina Brown (Newsweek editor-in-chief) and Baba Shetty (Newsweek chief executive) is almost a confirmation. The memo states that it is their responsibility to develop a “breakthrough digital product” and “turn the business around.”
The decision to sell is reportedly driven by the need to build up and focus on The Daily Beast, a non-aggregation news website and Newsweek’s online partner. The internal memo clarifies that IAC will only continue with the sale if the price “reflects the value” that the company has created for it. If not, it will continue to run Newsweek despite the issues surrounding it.
Newsweek sold for a dollar
Newsweek, a well-known international brand, was sold for the first time three years ago. When it was first put up for takers, Newsweek had a burden of US$70 million in losses, garnered for only two years, mostly due to the increasing preference of consumer to mobile platforms such as tablets and smartphones when it comes to getting updated with global news. In its heyday, Newsweek was the main rival of Time magazine. In 1991, at the height of its circulation, its print edition had more than three million readers.
Newsweek was sold by The Washington Post to automobile magnet Sydney Harman, a billionaire from California for a dollar, ahead of the deal with IAC. Harman assumed all the debts and liabilities of Newsweek when he bought it. Harman passed away in 2011 and his family has since terminated its contributions to Newsweek.
Why sell now?
In 2010, Newsweek merged with The Daily Beast, an online news site. Both these entities maintained their own brand. The leaked memo also stated that the reason for the impending sale is the need for focus. Newsweek remains a powerful global brand. But its demands have reportedly taken the focus away from its partner, The Daily Beast.
Photo Credit: Newsweek Last Print Issue
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