- The Washington Times - Wednesday, October 14, 2009

SAN FRANCISCO (AP) | Bloomberg LP is buying BusinessWeek magazine in a deal that brings together a financial news service specializing in rapid-fire updates with a print publication struggling to adapt to the Internet’s information whirlwind.

Terms were not disclosed.

The sale announced Tuesday is expected to close by the end of the year. It will end BusinessWeek’s 80-year run as part of McGraw-Hill Cos., which also owns the Standard & Poor’s credit rating agency.

New York-based McGraw-Hill put BusinessWeek on the auction block in July, apparently fed up with the losses that have been mounting at the magazine as its advertising revenue plunged.

The acquisition represents one of Bloomberg’s boldest and possibly riskiest attempts to extend its audience beyond its main mode of communication — the roughly 300,000 electronic terminals that it has set up in the offices of money managers, traders, bankers and other financial services professionals around the world.

“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,” said Daniel L. Doctoroff, Bloomberg’s president.

Like many print publications, BusinessWeek has been reeling from a one-two punch: the longest U.S. recession since World War II and a massive shift in media consumption that has driven more advertising online, where the prices are generally much lower than in print.

BusinessWeek also has been trying to figure out how a weekly magazine can remain relevant at a time when financial and corporate news is plastered all over the Web around the clock. As part of its coping mechanism, BusinessWeek has sharpened its focus on its corporate audience and trimmed its coverage of general-interest topics, such as sports and culture.

Bloomberg didn’t discuss how it might reshape the magazine’s coverage or whether it plans to retain all the publication’s roughly 400 employees.

Norman Pearlstine, a former managing editor for the Wall Street Journal and Time Inc.’s former editor-in-chief, will be BusinessWeek’s new chairman. He has been serving as Bloomberg’s chief content officer.

Copyright © 2019 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.

 

Click to Read More and View Comments

Click to Hide