Bloomberg buys BusinessWeek

The financial news and data company, founded by New York City's mayor, will take 80-year-old magazine off McGraw-Hill's hands. What's next for BusinessWeek is unclear.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Tami Luhby, CNNMoney.com senior writer

businessweek.03.jpg

NEW YORK (CNNMoney.com) -- Looking to expand its reach beyond Wall Street, Bloomberg LP said Tuesday it would buy BusinessWeek magazine from McGraw Hill Cos.

Bloomberg, founded in 1981 by New York City Mayor Michael Bloomberg, is purchasing the 80-year-old weekly newsmagazine to tap into its audience of decision makers around the world. Terms of the agreement were not disclosed, but reports say Bloomberg is paying up to $5 million.

Though it has a presence on the Web, radio and television, Bloomberg primarily transmits financial information through 300,000 proprietary terminals that are a mainstay in investment banks and financial firms worldwide. It also publishes a monthly magazine.

"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 [chief financial officers], deal lawyers, bankers and government officials who typically are not terminal customers," said Daniel Doctoroff, president of Bloomberg.

McGraw Hill (MHP, Fortune 500), owner of Standard & Poors rating agency, put BusinessWeek up for sale as advertising plummeted. Financial magazines saw their ad revenue sink 40.6% in the first nine months of the year, far more than the 20.3% drop for the magazine industry overall, according to Publishers Information Bureau. Several bidders expressed interest.

Bloomberg's plans for the newsweekly remain unclear, though BusinessWeek's powerful brand will likely remain in some form. This is Bloomberg's first acquisition, though it has made deals with print publications to distribute its stories.

"The acquisition of BusinessWeek will strengthen Bloomberg's online, television and mobile products," said Bloomberg Chairman Peter Grauer. "We also expect to build Bloomberg Television content around the powerful BusinessWeek brand and its world-class journalists."

The BusinessWeek sale comes on the heels of Conde Nast's shuttering of four magazines, including the venerable Gourmet. Beset by falling ad revenue and readership, the magazine industry has been closing titles and laying off workers during the economic downturn. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
7 quirky luxury products for the super rich Take a look at some of the most unusual luxury products being marketed to the top 1% in Monaco, including a rotating sunbed, hand-made wooden skis and fur coats for dogs. More
Five things to know about Putin's Russia An economic crisis, Western sanctions and a comeback currency: What's going on in Russia? More
9 up-and-coming collectible cars They're relatively cheap now but these models have already caught collectors' eyes and are expected to increase in value in years to come More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play