Tag Archives: BusinessWeek
Ives writes, “The job cuts, another buyer said, won’t help in that effort. ‘By cutting their staff in any significant way, they’re really hurting the product in the long run,’ said Audrey Siegel, exec VP-director of client services at TargetCast, the independent media agency. T’here are fewer and fewer people qualified to make the sales calls. We’re looking for more and more in-depth conversations about the business and how we can partner. We’re not looking for anyone to sell us pages.’
“Readers are the other factor asserting new importance. Fortune is testing the proposition that its readers don’t care much about the current frequency, cutting its schedule to 18 higher-polish issues every year from 24 now. That also means a de facto subscription-price increase, because subscription prices are staying the same while the number of issues falls 28%.
“That should help undo the decline that Fortune, like Forbes, has seen in readers’ contribution. Fortune netted 83Â¢ per copy from subscribers last year, down from 90Â¢ in 2007 and $1.43 in 2003. ‘Over the years they went to a model that doesn’t ask the reader to pay their fair share,’ said Ms. Siegel. ‘They were really reliant on advertisers. And when the bottom fell out — when certain categories such as technology, finance and luxury goods really pulled back — the magazines were left holding the bag.’
“Media buyers generally like the idea of charging readers more. ‘It’s just creating a better balance from your revenue sources and overall should make for a healthier business model,’ Mr. Kruse said.”
Read more here.
Bloomberg editor in chief Matthew Winkler interviewed with ContentSutra.org, an Indian media site, about the company’s plans in India, but he also discussed plans for BusinessWeek magazine, which the company is acquiring.
Here is an excerpt:
What is your editorial vision for BusinessWeek, which Bloomberg recently acquired? How do you plan to integrate the two operations and offerings and when does this process begin?
BusinessWeek is a unique platform in global media that has had an exceptional history of path breaking business reporting around the world. We are fortunate to have been given the opportunity to combine Bloomberg and BusinessWeek. We are going to share a great deal of BusinessWeek content on Bloomberg and Bloomberg Media. We also value the journalistic values the magazine brings, which are entirely compatible with our own values. Importantly, there isnâ€™t a great deal of overlap between the two (Bloomberg and BW).
BusinessWeek is a terrific consumer media platform in journalism and combining that with Bloomberg platforms that are professional, would be a wonderful step forward forward for this company.
Read more here.
Lowry writes, “Fox, 44, informed colleagues of his decision in a staff memo Friday afternoon, less than three weeks after McGraw-Hill announced it had reached an agreement to sell BusinessWeek to Bloomberg LP.
â€œ’I am proud that I played a role in ensuring that BusinessWeek has a new home at Bloomberg, where it will thrive under the leadership of Norman Pearlstine,’ Fox told staffers (see full memo below). ‘I am committed to the transition and helping in any way that I can.’ A veteran of McGraw-Hill, Fox did not specify the new role he will play at the company. He said he will take on new responsibilities in 2010, after assisting the BusinessWeek team with the transition to Bloomberg. The sale is expected to close in early December.
“Foxâ€™s resignation from his post follows a similar announcement from BusinessWeek editor-in-chief Stephen J. Adler, who told staff on Oct. 22 that he was stepping down. ‘Keith has been an extraordinary leader in the most difficult of times. He built a stellar business team, created a culture that combined high performance with exceptional collegiality, and won the respect and affection of the entire staff,’ Adler said of Fox on Friday. ‘To me, he was the ideal collaborator and the most generous of colleagues.’”
Read more here.
Jay Yarow of The Business Insider notes the large number of former Time Inc. and Fortune magazine executives and editors now at Bloomberg who could become involved in BusinessWeek magazine when its deal for the weekly closes.
Yarow writes, “Look at the people in charge.
- Norman Pearlstine, the new chairman of BusinessWeek is the former editor-in-chief at Time Inc.
- Jim Kelly, who used to be managing editor at Time, has been sitting in on BusinessWeek’s editorial meetings, and is now mentioned as a possible editor-in-chief for BusinessWeek.
- Bloomberg also has Eric Pooley, a former managing editor at Fortune, on its staff.
- Jim Aley who used to be at Fortune is also sitting in on meetings.
- Robert Friedman a former International editor at Fortune is now an editor at large for Bloomberg.
“With the magazines top editors on their way out — Stephen Adler announced his resignation last week — BusinessWeek staffers feel a little bit jarred and disconcerted.”
Read more here.
Former General Electric Co. CEO Jack Welch, who had been writing a management column with his wife Suzy for BusinessWeek until a staph infection put him in the hospital for 14 weeks, is uncertain about its return.
Paul Glader of The Wall Street Journal writes, “Mr. Welch and his wife, Suzy, normally write a back page column for BusinessWeek, which has ceased since his hospitalization. ‘We haven’t picked that up yet. We are working on that and thinking about that,’ he said. ‘That takes a lot of work. I’m not really ready for that.’
“Bloomberg LP is purchasing BusinessWeek from McGraw Hill. Mr. Welch acknowledges ‘a new owner, new thoughts’ could affect his column there. ‘We don’t know what the new magazine will look like. That’s down the road.’”
Read more here.
CEO Terry McGraw:
“As Iâ€™ve said before, in this environment management is reviewing, obviously, everything within the portfolio and that obviously included evaluating strategic options for BusinessWeek. BusinessWeek in its 80 years with McGraw-Hill Cos. has made significant contributions to this company. We must focus on resources on areas with the greatest opportunities for growth and that means building size and scale globally in essential markets and expanding our digital capabilities. In reaching an agreement with Bloomberg we believe that BusinessWeek will continue to operate within an organization that shares the same high standards for editorial independence, integrity and excellence that are the hallmarks of this publication.”
CFO Robert Bahash:
“On October 13 we signed an agreement to sell BusinessWeek to Bloomberg. We will receive $5 million in cash and Bloomberg will assume certain liabilities including our unfulfilled subscription liabilities.”
“The divestiture will reduce our dependence on advertising revenue. Following the divestiture of BusinessWeek advertising will represent about 2% of pro-forma total revenue versus approximately 4% previously.”
Read more here.
The company said that the sale, which is expected to close in the fourth quarter, would provide a gain of 2 cents per share, $9.3 million pre-tax and $5.9 million after-tax.
Earlier news reports pegged the sale price of the magazine at between $2 million and $5 million.
The New York-based company also said that advertising at the magazine’s global edition fell 29.3 percent in the third quarter, according to data from Publishers Information Bureau.
The release can be found here.
TALKING BIZ NEWS EXCLUSIVE
“They wanted to get into a corporate and government audience,” said Shepard, who is the founding dean of the CUNY Graduate School of Journalism. “A lot of good journalism that Bloomberg does is not seen.”
Shepard, who was editor of BusinessWeek from 1984 to 2005,Â said that the deal has “tremendous editorial synergies” and added, “It makes sense to me, and it will be good for business journalism.”
Shepard was speaking Thursday nightÂ to a group of 42 college students from 11 universities who were attending a conference on careers in business journalism at CUNY.
Allan Sloan, the senior editor at large at Fortune who was the night’s keynote speaker,Â also liked the deal.
“I’m glad someone bought it who’s going to keep it alive and invigorate it,” said Sloan. “I think it’s good for the business magazine category.”
Sloan declined to comment on the news that broke during the conference about his employer’s decision to cut back on its annual number of issues.
DISCLOSURE: I worked at BusinessWeek in from March 1993 to November 1994, when Shepard was editor.
Robert Neman of Mediaite has posted a nice collection of BusinessWeek covers down through the years.
You can view all of them here.
Here are my favorites:
Marketwatch.com media columnist Jon Friedman fingers former Fortune managing editor Eric Pooley and former Conde Nast Portfolio editor Joanne Lipman as two prime candidates to become the next editor of BusinessWeek magazine.
Current editor Stephen Adler plans to leave once the magazine’s acquisition by Bloomberg LP closes in December.
Friedman writes, “Both would be fine choices. Pooley, who writes columns for Bloomberg, edited Fortune a few years ago. Lipman was the top editor of Portfolio, a business magazine that Conde Nast stopped publishing a few months ago.
“A third possibility is Jim Kelly, who was the managing editor of Time magazine for many years. If Bloomberg decided to pursue a well regarded editor from outside the business-news realm, Kelly would fit in well. He has also been assisting Norman Pearlstine, Bloomberg’s chief of content, with the transition. Pearlstine has been placed in charge of absorbing BusinessWeek.
“In addition, don’t rule out Bob Safian, the respected editor of Fast Company who edited Money magazine under Pearlstine. Then again, if Pearlstine decided to hire someone from within BusinessWeek’s ranks, he could tap Ellen Pollock, a former senior editor at The Journal and one of Adler’s lieutenants.
“Another possibility is John Byrne, who was a finalist when Adler got the job several years ago. Byrne was an admired cover-story writer at BusinessWeek and popular figure at the magazine for many years before leaving to take over as editor of Fast Company. When Adler took the reins, he recruited Byrne and placed him in charge of BusinessWeek’s Internet operations.”
Read more here.