Newsweek Sold to IBT Media
Deal to close in a week, final transition will happen within 60 days.
It was announced this weekend that IBT Media has agreed to purchase Newsweek from IAC.
IBT Media is the New York-based, digital-only publisher of flagship brand International Business Times, as well as ten other online news sites.
The deal splits Newsweek from The Daily Beast, which will remain with IAC. IBT will relaunch the brand under its former Newsweek.com URL.
IBT launched in 2006 and its platform reaches a combined 30 million unique visitors.
Terms of the deal were not released, but it's expected to close within a week. IAC will continue to operate Newsweek for up to 60 days as the brand transitions into IBT.
Part of that transition will include determining which staff make the move, according to an internal memo from interim Newsweek/Daily Beast CEO Rhona Murphy.
The deal, according to the announcement, includes the Newsweek brand and its digital operations. It will operate as a wholly owned subsidiary of IBT. Ongoing foreign license agreements will remain in place.
IAC merged Newsweek with The Daily Beast, in a 50/50 joint venture with Sidney Harman, in late 2010.
The deal was strained from the get-go. The Daily Beast-Newsweek blend was forced, at best. The Harmans eventually decided to end their investment and then the title went digital-only shortly after. IAC chairman Barry Diller finally summed up the merger as a regrettable "mistake" in May and then promptly put it on the block.
IBT's announcement of the deal.