Could Newsweek and the Daily Beast Merge Digital Operations?

Speculation abounds about the future of Newsweek, and the latest rumor comes from Keith Kelly at the New York Post. According to his report, the magazine and IAC website, The Daily Beast are talking about merging digital operations.
This would make sense of all the rumors surrounding Daily Beast’s editor Tina Brown’s reported interest in the Newsweek editor-in-chief job.

According to Kelly, recently minted Newsweek owner Sidney Harman had drinks with IAC Chairman Barry Diller at a Washington, D.C. Four Seasons. It seems a little thin; after all, maybe they’re just a couple old rich gents talking about golf?

But Kelly speculates that Diller has wanted to find a easy and respectable way to dump the Daily Beast, and a deal with Newsweek would be the quickest path to accomplishing that desire.

“Diller, who reportedly was willing to spend $18 million on the Daily Beast and who remains a big benefactor of Brown’s, would relish a graceful exit to the business, which has struggled for ads from the start and seemingly has little chance of making money in the near future,” wrote Kelly.

Diller nor Harman would respond to the rumor.

But the ink from the sale of Newsweek is hardly dry, and Harman’s thinking on bringing in a whole new operation and a bunch of new employees? That doesn’t exactly show confidence in the current workforce.