Bloomberg To Buy BusinessWeek From McGraw-Hill For Reported $2M-$5M
McGraw-Hill (MHP) has announced that it will sell BusinessWeek to Bloomberg L.P. Terms were not disclosed. The deal is expected to close in the fourth quarter.
BusinessWeek itself is reporting that "knowledgeable sources" says the offer is in the $2 million to $5 million range, plus the assumption of liabilities, including severance payments. The story says "it remains to be seen" how many of the magazine's 400-plus staff Bloomberg will cut.
The piece notes that BusinessWeek this year is expected to lose more than $40 million on revenue of about $130 million; in 2000, the magazine had 6,000 ad pages, and operating profits of $100 million, and according to "some analysts at the time," was then worth $1 billion.