New York – Bloomberg LP, the global financial data and news empire created by New York City Mayor Michael R. Bloomberg, is the winning bidder for BusinessWeek.
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Terms of the offer will not be disclosed by Bloomberg and BusinessWeek parent McGraw-Hill Cos. But knowledgeable sources say that Bloomberg’s cash offer is in the $2 million to $5 million range and that it has agreed to assume liabilities, including potential severance payments. 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.
If the deal closes as anticipated by Dec. 1, it will be unprecedented for both buyer and seller. For Bloomberg, buying BusinessWeek will be its first major acquisition ever and a significant departure for a 28-year-old company nurtured on a “build, don’t buy” culture. “The BusinessWeek acquisition will yield huge benefits for users of the Bloomberg terminal, for our television, online and mobile properties,” says Daniel L. Doctoroff, president of Bloomberg LP and a former deputy mayor of New York City appointed by Mayor Bloomberg. “We couldn’t be more excited…We are not buying BusinessWeek to gut it. We are buying it to build it.”
The deal also signals a shift by Bloomberg into more consumer-focused media. “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,” says Bloomberg LP Chairman Peter Grauer.
I hope he got a good price. The quality of BW has been in a steady decline for years.
Frankly, I’m surprised he didn’t push a measure through the corrupt council giving him ownership of the magazine.
who cares
Mabey bloomy will be busy with this new venture , he won’t send his brownys to give us so many tickets..
He spent 80 million on his campaign, 2 million is bubkas.