Bloomberg, a late entrant into the bidding for the business weekly, did not disclose terms of the deal.
There had been some speculation last week that, if Bloomberg were to acquire BusinessWeek, the magazine’s staff might be dumped and replaced by the current staff of Bloomberg Markets magazine. Although the press release that just went out about the deal didn’t address any staffing decisions yet, it did note that Bloomberg’s chief content officer Norman Pearlstine has now been named chairman of BusinessWeek.
“Norm’s role will ensure that we fully capitalize on the combined strengths of Bloomberg and BusinessWeek,” said Matthew Winkler, editor-in-chief of Bloomberg News.
We’ll keep you updated as this story progresses. Know anything? Let us know.
Full release after the jump.
Update: BusinessWeek‘s own “On Media” column reports that Bloomberg likely offered $2 to $5 million in cash for the magazine and “has agreed to assume liabilities, including potential severance payments.” Added reporter Tom Lowry, “It remains to be seen how much of the magazine’s 400-plus staff Bloomberg plans to cut, but reports of a planned scorched earth campaign are overblown, say sources.”
Another update: BusinessWeek Publisher Keith Fox‘s memo to the magazine’s staff: “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.”
Earlier: Down To The Wire At BusinessWeek
BLOOMBERG AGREES TO ACQUIRE BUSINESSWEEK
Combination Will Create the Definitive Multimedia Business News Source
New York, October 13 — Bloomberg L.P., the leading provider of news and information for financial professionals, has agreed to purchase BusinessWeek, publisher of the world’s most-read business weekly, from The McGraw- Hill Companies, Inc. Terms of the agreement were not disclosed.
“The BusinessWeek acquisition will yield huge benefits for users of the Bloomberg terminal, and for our television, online and mobile properties,” said Daniel L. Doctoroff, president of Bloomberg L.P. “We couldn’t be more excited.”
“Although Bloomberg has built one of the world’s largest news organizations with more than 2,200 journalists, our primary audience has been our 300,000 BLOOMBERG PROFESSIONAL service subscribers. They rely on us for high-value, market-moving news and insightful analysis.
“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,” Doctoroff noted.
Bloomberg L.P. Chairman Peter T. Grauer said, “The acquisition of BusinessWeek will strengthen Bloomberg’s online, television and mobile products. Together, the BusinessWeek.com and the BLOOMBERG.COM Web sites will have more unique visitors than any non-portal business and financial site. We also expect to build BLOOMBERG TELEVISION content around the powerful BusinessWeek brand and its world-class journalists.
“Bloomberg’s universe of market makers and BusinessWeek’s readership of decision makers create a powerful audience and a unique value proposition for advertisers. The reporting and analytical resources of Bloomberg and BusinessWeek are unparalleled in their ability to deliver timely, distinctive and credible content to an influential and highly sought-after audience,” Grauer added.
Matthew Winkler, Editor-in-Chief of Bloomberg News said, “BusinessWeek, with its extraordinary context and perspective on the economy and companies, presents a giant opportunity for the BLOOMBERG NEWS service to reach decision makers in the most important industries. We are thrilled to have such experienced journalists as our colleagues.”
To facilitate integration of the two news organizations, Norman Pearlstine will become Chairman of BusinessWeek. Pearlstine, Bloomberg’s Chief Content Officer, joined Bloomberg last year, building on a distinguished career as Managing Editor of The Wall Street Journal and Editor in Chief of Time Inc. “Norm’s role will ensure that we fully capitalize on the combined strengths of Bloomberg and BusinessWeek,” Winkler said.
“Bloomberg looks forward to becoming steward of the great BusinessWeek franchise that McGraw-Hill has built over the past 80 years,” said Pearlstine. “We are uniquely positioned to preserve and build the market presence of BusinessWeek. Our shared values and complementary resources give us the editorial and technological expertise, data, analysis and depth of reporting to create a new model for the business weekly.”