As another sign of the struggle caused by the financial crisis to many companies, McGraw-Hill today announced it will be selling its BusinessWeek business to Bloomberg. The price of the deal was undisclosed; neither are the job cuts and staffing. Some estimate, however, the sale to cost Michael Bloomberg, the founder of the financial information provider, to pay $5m including taking charge of the liabilities worth more than $10m BusinessWeek currently holds in its balance sheet. As part of this deal, the magazine might later on be renamed Bloomberg BusinessWeek.
The ownership change comes amid a major advertising downturn and a broader shift by readers from traditional news media to the Web. Respected media owners such as McGraw-Hill and Conde Nast Publications Inc. are closing print titles and slashing investments in traditional publications, a sign they don’t expect these businesses to return to strong health as the economy recovers.
Meanwhile, Bloomberg is able to support its media business with earnings from other areas, namely data services sold to financial professionals.
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