Newsweek Site to Shut Down

There apparently isn’t room for two sites at the Newsweek Daily Beast Company. The new joint venture will kill off, even though its audience is larger than the Beast’s., the offshoot of a 77-year-old brand, has 3.8 million monthly unique visitors to the two-year-old Beast’s 1.5 million, according to
The Beast is the survivor, said Stephen Colvin, the company’s new CEO, “Because the Daily Beast is a very credible and successful news and opinion Web site. And with great vitality and distinct voice.”

The site will publish content, and traffic will be directed there.

As expected, Newsweek CEO Tom Ascheim (who, ironically, was brought on to pump up Newsweek digitally) is leaving the company.
The Newsweek, and Daily Beast staffs will be combined under Tina Brown, the Beast founder who was named the company’s new chief editor. The combined staff will work out of the financial district, where Newsweek was already planning to relocate after its sale to Sidney Harman three months ago. The move is scheduled to take place in a few weeks.
Skepticism about Newsweek and The Daily Beast merger is running high, but Colvin said the two could make more money as a combined entity.
“We’re providing a much bigger platform and access to a very sought-after audience for marketers in the various platforms they want,” he said in a phone call a few hours after the merger was announced. “And that will definitely lead to all kinds of incremental revenue opportunities. And Tina Brown is a very talented editor. There’s no doubt that will lead to circulation growth.”
Jitters about layoffs are running high at Newsweek, whose staff has already been diminished by layoffs and defections since its sale to Harman. Colvin was noncommittal about further cuts. He said while many Newsweek staffers would fit the kinds of hires the Beast was looking to make, adding, “Obviously there will be efficiencies.”