Bloomberg is buying 80-year-old magazine BusinessWeek for a price rumoured to be between USD2m and USD5m. The publication has posted losses for several years and made plans earlier this year to cut staff numbers and reduce costs. However, owner McGraw-Hill has since decided to put the magazine up for sale. Bloomberg may have to pay any redundancy payouts which come as a result of the buyout.
BusinessWeek employs around 400 staff but Bloomberg president Dan Doctoroff tells The Daily Telegraph: ?We are not buying BusinessWeek to gut it. We are buying it to build it.?
BusinessWeek will continue to publish weekly in print and online, and it is unknown whether Bloomberg eventually plans to absorb the publication into its existing brands. As with Cond?ast’s Portfolio publication, which recently closed down, BusinessWeek has suffered due to the increasing shift of advertising online, where prices are much lower than print.
StrategyEye's related categories: Print Publishers - Newspapers & Magazines
StrategyEye's related companies: Bloomberg, The McGraw-Hill Companies
