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After months of speculation, and rounds of bidding it’s over.
Bloomberg LP has agreed to buy BusinessWeek says a source. It’s now been confirmed by Bloomberg.
Bloomberg is paying $2 million to $5 million in cash reports BusinessWeek. It agrees to take on certain liabilities, including potential severance payments.
Dan Doctoff, president of Bloomberg LP says “We are not buying BusinessWeek to gut it. We are buying it to build it.”
Norman Pearlstine, Bloomberg’s Chief Content Officer will become the chairman of BusinessWeek.
It’s not certain if the web operations of Bloomberg and BusinessWeek will be left separate or will be combined, reports BusinessWeek. In total, the sites have 20 million uniques and 100 million pageviews, generating $60 million in revenue.
The BusinessWeek brand will be used to bolster Bloomberg’s unprofitable broadcast network. It is also part of a more consumer oriented strategy by Bloomberg.
The magazine will be given the clunky name of Bloomberg BusinessWeek, reports the NYT.
Here’s the release:
BLOOMBERG AGREES TO ACQUIRE BUSINESSWEEK Combination Will Create the Definitive Multimedia Business News Source New York, October 13 – Bloomberg L.P., the leading provider of news and information for financial professionals, has agreed to purchase BusinessWeek, publisher of the world’s most- read business weekly, from The McGraw-Hill Companies, Inc. Terms of the agreement were not disclosed.
“The BusinessWeek acquisition will yield huge benefits for users of the Bloomberg terminal, and for our television, online and mobile properties,” said Daniel L. Doctoroff, president of Bloomberg L.P. “We couldn’t be more excited.” “Although Bloomberg has built one of the world’s largest news organisations with more than 2,200 journalists, our primary audience has been our 300,000 BLOOMBERG PROFESSIONAL® service subscribers. They rely on us for high-value, market-moving news and insightful analysis.
“BusinessWeek helps better serve our customers by reaching into the corporate suite and corridors of power in government, where news that affects markets and business is made by CEOs, CFOs, deal lawyers, bankers and government officials who typically are not terminal customers,” Doctoroff noted.
Bloomberg L.P. Chairman Peter T. Grauer said, “The acquisition of BusinessWeek will strengthen Bloomberg’s online, television and mobile products. Together, the BusinessWeek.com and the BLOOMBERG.COM® Web sites will have more unique visitors than any non-portal business and financial site. We also expect to build BLOOMBERG TELEVISION® content around the powerful BusinessWeek brand and its world-class journalists.
“Bloomberg’s universe of market makers and BusinessWeek’s readership of decision makers create a powerful audience and a unique value proposition for advertisers. The reporting and analytical resources of Bloomberg and BusinessWeek are unparalleled in their ability to deliver timely, distinctive and credible content to an influential and highly sought-after audience,” Grauer added.
Matthew Winkler, Editor-in-Chief of Bloomberg News said, “BusinessWeek, with its extraordinary context and perspective on the economy and companies, presents a giant opportunity for the BLOOMBERG NEWS® service to reach decision makers in the most important industries. We are thrilled to have such experienced journalists as our colleagues.”
To facilitate integration of the two news organisations, Norman Pearlstine will become Chairman of BusinessWeek. Pearlstine, Bloomberg’s Chief Content Officer, joined Bloomberg last year, building on a distinguished career as Managing Editor of The Wall Street Journal and Editor in Chief of Time Inc. “Norm’s role will ensure that we fully capitalise on the combined strengths of Bloomberg and BusinessWeek,” Winkler said.
“Bloomberg looks forward to becoming steward of the great BusinessWeek franchise that McGraw-Hill has built over the past 80 years,” said Pearlstine. “We are uniquely positioned to preserve and build the market presence of BusinessWeek. Our shared values and complementary resources give us the editorial and technological expertise, data, analysis and depth of reporting to create a new model for the business weekly.”
BusinessWeek magazine, founded in 1929, is the market leader among business periodicals with more than 4.8 million readers each week in 140 countries, local language editions in Chinese, Thai and Bahasa Indonesian and licensees in 15 countries. Bloomberg is the number one source of essential breaking news stories, market coverage, investigative and enterprise reporting on global financial markets and the businesses, governments and individuals that rely on them.
In addition to BusinessWeek magazine, the BusinessWeek brand encompasses the BusinessWeek.com Web site, the Business Exchange online news and information service, SmallBiz magazine and BusinessWeek Events.
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