Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Newsweek Owner Says Magazine Will Eventually Shift Online

Don't Miss Out —
Follow us on:
Newsweek Owner Says Magazine Will Eventually Shift Online
A plan to move Newsweek to an online-only publication will be announced as early as September, IAC/InterActiveCorp Chairman Barry Diller said. Photographer: David Paul Morris/Bloomberg

July 25 (Bloomberg) -- Newsweek will eventually transition to an online publication, owner IAC/InterActiveCorp said today, marking the beginning of the end for the money-losing magazine’s 79-year run as a print weekly.

IAC Chairman Barry Diller made the announcement during a quarterly conference call, saying the New York-based company aims to curb investments in the business. Newsweek is projected to lose as much as $22 million this year, according to a person with direct knowledge of the matter. Still, Diller stopped short of saying the magazine would undergo a “total” shift online.

“The transition to online from hard print will take place,” Diller said. “We’re examining all of our options.”

A plan for Newsweek will be announced as early as September, Diller said. Newsweek became part of his media holdings in 2011 when it merged with IAC’s Daily Beast Co., an Internet news startup that Diller founded with former Vanity Fair editor Tina Brown. The merger was part of an agreement with the late Sidney Harman, who acquired Newsweek from Washington Post Co. for $1 and the assumption of liabilities.

Justine Sacco, spokeswoman for IAC, declined to comment on Newsweek’s losses.

IAC acquired a controlling stake in Newsweek/Daily Beast Co. in late May after Harman’s family trust stopped making capital contributions to the joint venture. IAC reported an $18.6 million pretax expense last quarter related to the move.

IAC, which makes most of its revenue from the Match.com and Ask.com websites, reported a 2.1 percent gain in second-quarter net income to $43.3 million. Sales increased 40 percent to $680.6 million.

To contact the reporters on this story: Sarah Frier in New York at sfrier1@bloomberg.net; Edmund Lee in New York at elee310@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.