Yesterday afternoon came the long-awaited news that Bloomberg LP had snapped up McGraw-Hill’s BusinessWeek.
This morning, there are a few new points of view on the deal, which is said to have cost Bloomberg less than $5 million. Bloomberg also reportedly agreed to assume all of BusinessWeek‘s liabilities, including the cost of getting magazines to all of its subscribers who have paid in advance and any severance packages for BusinessWeek employees who are laid off during the transition. The New York Times says BusinessWeek‘s liabilities were $31.9 million as of April.
The Times also reports that the magazine will be rechristened Bloomberg BusinessWeek.
The Financial Times focused on the fact that this acquisition is a change of pace for the privately owned Bloomberg. “The rare break from Bloomberg’s tradition of organic growth came as Thomson Reuters, its rival in financial data terminals, was putting the finishing touches to a takeover of Breakingviews.com, a UK-based financial commentary website.”
“Bloomberg Markets serves a very different market,” Bloomberg President Dan Doctoroff told the financial paper about his company’s print publication. Doctoroff also said the company planned to keep both magazines in print, denying speculation that Bloomberg would cut BusinessWeek‘s staff.
And in the hours after the deal, PaidContent scored an interview with the new chairman of BusinessWeek, Bloomberg’s chief content officer Norm Pearlstine. Among the Q&A was one question we were all wondering: why did Bloomberg emerge the winner of the auction for BusinessWeek after first showing no interest? Said Pearlstine:
“I think like others we took an initial look at it and it took us a while to figure out what the opportunities were and to get excited about it. The initial observation was that it was a publication struggling financially in a narrow category lumped together with Fortune and Forbes that were also struggling. The more we thought about it, the more we looked into it, the more we saw the opportunity to invest in a weekly magazine about global business — and that in doing so we could differentiate ourselves from what is typically thought of as competition for Bloomberg.”