Thomson Reuters is partnering with ZelnickMedia in its bid for BusinessWeek, reports Rafat Ali at PaidContent.
Reuters is getting involved because McGraw Hill (MHP) wants BusinessWeek to go to a media company, not just a private equity firm. Also, Reuters might want to keep it out of the hands of Bloomberg, says Ali.
Considering the magazine lost $43 million last year and has $31.9 million in debt, we’re not so sure it’s necessarily the best move to keep it out of a competitor’s hands.
Ali doesn’t have many details on how Reuters would be involved in BusinessWeek’s operations, he just calls the financial news giant a “strategic partner,” and says there would probably be “a content and distribution arrangement.” Reuters is expanding its reaching, hoping to deliver more news, analysis, and opinion. BusinessWeek could do all three quite capably.
If we’re BusinessWeek employees, we think we’d rather go to Reuters. With all its blogs and more open policies, it seems like a better fit culturally.
The good news for BusinessWeek’s staff: According to Ali, the sale to Bloomberg isn’t as final as people think. He says McGraw Hill is still performing due diligence on both ZelnickMedia and Bloomberg.