So Bloomberg is to acquire McGraw-Hill’s venerable but struggling magazine BusinessWeek for a cash offer of between $2 million to $5 million. Not very precise, but it appears the terms of the deal, which is expected to complete by 1 December, have not been formally announced.
Founded in the Great Depression, but will BusinessWeek be able to take care of its own?
BusinessWeek, founded in 1929 at the time of the Great Depression, was put up for sale in July, and the process has followed a tortuous path over the last few months. PaidContent.org has a useful timeline of its coverage following the twists and turns of the deal here.
The weekly, which competes with fortnightly publications Forbes and Fortune, is thought to have lost around $20 million last yar and was projected to see that figure more than double in 2009. According to a blog posting by BusinessWeek’s senior editor Robin Ajello, Bloomberg will take on all existing liabilities including potential severance payments.
The magazine employs around 400 staff, and Ajello said editor-in-chief Steve Adler has sought to allay fears of a “scorched earth policy” and told his staff the deal guaranteed that McGraw-Hill benefits would be extended to employees for one year after the deal closes.
The acquisition marks a significant change of direction for Bloomberg that since being established in 1981 has sought to build rather than buy market share.
The full team of top Bloomberg executives, along with McGraw-Hill CEO Terry McGraw, will speak to BusinessWeek staff first thing today.
