More from BusinessWeek columnist Jon Fine’s article about BusinessWeek‘s pending sale: The reason McGraw-Hill (MHP) wants out — and the reason the purchase price could be tiny — is because the magazine is effectively costing its owner $40 million a year. (Via MediaMemo.)
[E]xecutives, all of whom insisted on anonymity because they signed confidentiality agreements, say the data state that BusinessWeek lost around $20 million on revenues of $147 million in 2008, and that slightly smaller losses are projected in 2009 on revenue of around $135 million. These losses do not, however, include key corporate overhead items, such as rent and certain infrastructure-related costs. When all those items are factored in, the total loss figure essentially doubles, said two executives who saw the data.
Six months into 2009, BusinessWeek ad revenues are down 30% from the same period in 2008, according to the Magazine Publishers of America, while average magazine ad revenue is down 22%.
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