IBT Media said it is buying Newsweek from IAC/InterActiveCorp, splitting it from the Daily Beast brand, and plans to make it profitable.
IBT, owner of the International Business Times, is acquiring Newsweek after the 80-year-old magazine shifted to online-only in January and lost its chief executive in June. Terms of the deal were not disclosed, according to a statement from IBT on Saturday announcing the transaction.
“With our knowledge of building digital brands and with the power of the Newsweek brand we think we can build it and definitely be profitable,” Etienne Uzac, co-founder and chief executive officer of IBT Media, said in an interview on Saturday. “There are revenue models that Newsweek has that are different from what IBT is doing, so bringing the two together there’s a lot of opportunity to grow.”
IAC, run by Barry Diller, purchased Newsweek as part of an agreement with the late Sidney Harman in November 2010 and combined it with the Daily Beast news Web site. The billionaire this year said he regretted the move and started looking for buyers.
“I wish I hadn’t bought Newsweek,” Diller told Bloomberg Television in an interview in April.
Publishing a weekly magazine at a time when news has become instantaneous is a “fool’s errand,” he said.
Harman had acquired Newsweek from the Washington Post for US$1 plus assumption of liabilities.