HONG KONG Financial news empire Bloomberg has won the bid to acquire global business magazine BusinessWeek from its owner McGraw-Hill Cos.
The sale is expected to close during the fourth quarter of this year. While terms of the agreement were not disclosed, reports say Bloomberg will pay up to $5 million.
The 80-year-old title will be a powerful addition to the Bloomberg stable, said Bloomberg chairman Peter Grauer. “BusinessWeek is one of the business world’s most recognized and trusted sources of news and insight, and we believe that it will be highly valued by our customers worldwide,” he said.
Harold McGraw, chairman, president and chief executive officer of McGraw-Hill, said the sale would enable McGraw-Hill to focus on its remaining brands that includes some media properties.
“I am very proud of the tremendous contributions BusinessWeek has made to McGraw-Hill throughout its rich history. It is a truly outstanding franchise and the best source of business reporting in the world,” McGraw said.
BusinessWeek was particularly hard hit by the recession in the U.S., where reports say its revenue for this year is expected to be around $130 million, down some $60 million from a year ago. At its peak in 2000, the magazine was operating on profits of $100 million.