Leslie Kaufman and Christine Haughney on the failed merger of Newsweek and The Daily Beast:
Given that the two publications lost more than $30 million in the previous two years, he asked, why was it a good idea to put them together? And if The Beast was on schedule to break even in 18 months, how much longer would it take now that Newsweek was part of the mix?
Ms. Brown says she has no recollection of that particular meeting, but half a dozen employees who say they were present said the atmosphere immediately turned awkward. The famous editor gave no ground. The target, she said, remained 18 months.
More than two and a half years later, Ms. Brown has missed the mark. Synergies have long since slipped away. After the magazine hemorrhaged tens of millions of dollars, Barry Diller, the billionaire media mogul whose company owns both publications, publicly called the purchase of Newsweek “a mistake” and the original plan to save it “stupid.” On Saturday, the company announced that it had sold Newsweek for an undisclosed amount to the digital news company International Business Times.