While "The Daily Beast" has only been around two years, "Newsweek" has 77 years -- and a red-ink balance sheet -- under its belt. Image: Wikimedia Commons.
In an announcement made this morning, “The Daily Beast” founder Tina Brown confirmed that the website will be merging with Newsweek. The two media properties have entered a full half-and-half partnership with one another. The combined The Newsweek Daily Beast Company will share one editor, who plans on fully making use of both sides of the news coin.
‘The Daily Beast’ and ‘Newsweek’ merge
“The Daily Beast” is a news and editorial website that has been running for about two years. It is co-run by former “Vanity Fair” editor Tina Brown and “The Week” and “Maxim” founder Stephen Colvin. “Newsweek”, last year, was purchased from “The Washington Post” for $1 by Sidney Harmon. “Newsweek” has been in print for 77 years, and will continue their print operations.
Two different media for two different partners
Tina Brown, in an interview on NPR this morning, sounded incredibly excited about the possibilities of The Newsweek Daily Beast Company. She outlined how the 24/7 news cycle can be “beast-like” and while the web is perfect for that, she intends on taking “Newsweek” a different direction. Magazines, she claims, are the perfect medium for long-form, investigative, “meaningful” journalism that the web simply cannot easily support.
…having done so much Web news now, I can actually see what a magazine can offer, which is unique in the marketplace … is a different kind of narrative rhythm. … In a magazine you can be more reflective…
In other words, “The Daily Beast” will continue the “animal-like” energy it has built up, while Newsweek will provide the analysis and investigation “arm” of the new media company.
The business of The Newsweek Daily Beast Company
The new Newsweek Daily Beast Company has a full 50 percent split of control. Barry Diller and InterActive Corp have been financing “The Daily Beast.” Barry Diller is best known for creating USA Broadcasting and Fox Broadcasting Company. Diller is also the Chairman of Expedia. “Newsweek” saw a 38 percent drop in revenue between 2007 and 2009, and Sidney Harmon, audio mogul, purchased the magazine for $1. The two companies will share profits and revenues, and the hope is that the partnership will shore up “Newsweek’s” losses, which for just the first quarter for 2010 clocked in at $11 million.
