Bloomberg Gets BusinessWeek

By Kyle Austin

As I alluded to yesterday, Bloomberg L.P. and McGraw-Hill have come to an agreement on the acquisition of BusinessWeek.

In a likely sign of things to come, the deal was broken on the Bloomberg wire yesterday evening, with an in-depth report following on BusinessWeek.com. As of now, it looks like BusinessWeek and BW.com will remain their own brands, with layoffs not occurring until the deal closes in December.

Here’s the full memo to BusinessWeek staff from the magazine’s publisher, Keith Fox:

All,

Moments ago, McGraw-Hill announced that Bloomberg L.P. has agreed to acquire BusinessWeek. This is exciting news on many levels. Joining forces with another of the world’s leading news organizations enhances BusinessWeek’s ability to further serve our global audience and our valued customers. And Bloomberg will gain a powerful brand with a history of editorial excellence and strong reach among business professionals.

While the ink is barely dry and the long-term plans are being worked out, we do know that Bloomberg is committed to and values our brand, our editorial integrity, and our ability to drive advertising, circulation, and new digital revenue.

BusinessWeek will strengthen Bloomberg’s online, television and mobile products and creates an opportunity for Bloomberg News to reach decision makers in the c-suite. Online, BusinessWeek.com and Bloomberg.com will have more unique visitors than any non-portal business and financial site. In addition, Bloomberg expects to build television content around the powerful BusinessWeek brand and our world-class journalists.

I am tremendously proud of the work all of you have done in the past few months. Despite the uncertainty, we have continued to produce first-class products for our readers and advertisers, and I want to thank you deeply for your efforts. I also want to thank Steve Adler, Jessica Sibley, Tania Secor, Roger Neal, and Linda Brennan, for their extraordinary ability to personify the best of BusinessWeek during the deal process while leading their respective organizations.

I know that while this announcement answers some of the questions you’ve been asking over the past few months, it raises others. The sale is expected to close by the end of the year and we will be working on transition plans in the coming weeks. I can tell you that all BusinessWeek staffers will remain employees of The McGraw-Hill Companies until the transaction closes, and that it will be business as usual–producing the magazine and the website, and serving our advertisers–through the close. We will give you more details when we can.

We’ll be holding a town hall meeting later today at 5:45 EST, after which a Q&A will be provided to all employees; you will receive more details shortly. A call for the Asia teams will be scheduled shortly.

Again, I want to thank you all for your professionalism and dedication during a challenging time. I look forward to working with you on the promising next chapter in BusinessWeek’s history.

Keith

3 comments October 14th, 2009

Condé Nast Dumps Gourmet, Woos Online Dating

By Molly Galler

Last week, publishing giant Condé Nast announced it would be closing four of its magazines – Cookie, Elegant Bride, Modern Bride and the iconic food publication, Gourmet. While the foodies are still wearing all black and mourning the loss of Gourmet, Condé Nast has been hard at work on its next venture – an online dating website.

No, you did not misread that. In the wake of budget cuts, Condé Nast is seeking a new stream of revenue and is courting a new industry. Is Condé Nast off its rocker, or just paying attention?

Despite the dramatic effects of the recession across all types of businesses, online dating has continued to boom, even websites that require a paid subscription. Both eHarmony and Match.com have reported increased registration in 2009.

While publishing houses cope with the reality that consumers would rather read content online, on their mobile phones and/or their e-readers, perhaps it makes sense for Condé Nast to explore a business venture that lends itself to the new, technology savvy consumer.

With that in mind, TrulyMadlyDating.com was launched under the Condé Nast umbrella. According to Melissa Noble of YourTango.com, “TrulyMadlyDating.com is Condé Nast’s official online dating site and what separates it from, say, Match.com, eHarmony or OkCupid? Everyone is just mah-valously dressed, dahling.”

The site brands itself as recommended by GQ and Glamour, two of Condé Nast’s leading publications. Will this endorsement help keep the magazines afloat?

It’s possible, according to Media Bistro writer Amanda Ernst. In a recent interview she conducted with Caroline Little, the North American CEO of Guaridan News & Media (U.K.), Ernst reports, “We asked what we always ask very powerful media people: can digital advertising replace what we’ve lost in print ads? Little’s response was a resounding no. She said print publications were going to have to look for alternate streams of revenue, and she specifically pointed to a dating service that the Guardian operates in the U.K. called Soulmates. “You could use that in local markets,” Little said of U.S. publications. Looks like Condé Nast is well on its way to taking that advice.”

While recent struggles may have sent Condé Nast into fight or flight mode, it seems the publishing company may have latched onto a promising, new, business opportunity.

What do you think? Can Condé Nast succeed in matching the Glamour girls with the GQ boys? More importantly, can they profit from this new venture, and profit enough to keep their existing print publications on newsstands?

Disclosure: eHarmony is a client of Racepoint Group.

13 comments October 14th, 2009