I guess today is the day for announcing the sale of struggling media properties: IBT Media just said that it has reached an agreement to acquire Newsweek from IAC.
Back in 2010, Newsweek merged with IAC-owned website The Daily Beast. (The magazine subsequently ceased print publication and went digital-only.) However, earlier this year, IAC Chairman Barry Diller said that buying Newsweek was a mistake, one he would correct by selling it off.
“We are thrilled to welcome this iconic brand and global news property into our portfolio,” said IBT co-founder and CEO Etienne Uzac in a press release. “We believe in the Newsweek brand and look forward to growing it, fully transformed to the digital age. We respect the brand’s long history of delivering high-quality, impactful journalism and believe this aligns well with IBT Media’s culture and mission. We look forward to working together to create a profitable and successful enterprise.”
Newsweek will continue serving existing subscribers and will also hold to existing foreign license agreements, says IBT, adding that the publication will operate as a wholly owned subsidiary of the larger media company. IBT’s publications include the International Business Times, which operates out of Newsweek’s old newsroom.
In an internal memo published by Capital New York, the Newsweek was apparently told, “IBT will be talking to staff during [the 60-day transition period] about potential job opportunities at the new venture.”
The financial terms of the deal were not disclosed. The Daily Beast is not part of the acquisition, and in fact IAC has said that it’s selling Newsweek in order to focus on The Daily Beast.