Bloomberg today announced that they have agreed to buy BusinessWeek (both print magazine and website) from McGraw- Hill, the textbook publisher and owner of the Standard & Poor’s ratings unit. The terms of the deal have not been revealed but it is said that deal is in $2 million to $5 million range and that Bloomberg has agreed to assume liabilities, including potential severance payments.
The acquisition will strengthen online, television and mobile products, Bloomberg Chairman Peter Grauer said today in a statement. The purchase includes the print magazine and the BusinessWeek.com Web site. Terms weren’t disclosed. The transaction is scheduled to close Dec. 1, Bloomberg President Daniel Doctoroff said in an interview.
“We’re buying BusinessWeek to build it,” Doctoroff said. “Our intention is to take a venerable brand and turn it into the best global business newsweekly.”
McGraw-Hill, based in New York, said in July that it was exploring strategic options for the weekly as advertising sales and circulation slumped. BusinessWeek is part of McGraw-Hill’s information and media unit, the smallest of the company’s three divisions after financial services and education.
Norman Pearlstine, Bloomberg’s chief content officer, will be chairman of BusinessWeek. Bloomberg and BusinessWeek have complementary resources that can create a new model for the magazine, he said in the statement.
BusinessWeek’s advertising revenue fell 32 percent in the first nine months of 2009 to $112.6 million from $164.4 million a year earlier, according to Publishers Information Bureau data. That compares with a 20 percent decline industrywide.