IAC Takes Over Newsweek/Daily Beast

It’s up to Barry Diller‘s company to chart a course for the Tina Brown-run print and Internet publication. The family of one-time audio pioneer Sidney Harman decided to pull back from the joint venture with IAC. Harman was actively involved in the operation, but he died in April 2011. As a result, “the Harman trust has indicated that it does not intend to make further capital contributions to the venture,” it told┬áReuters, which broke the story. Harman’s wife, former California Rep. Jane Harman, will remain on the board. The big question now is how long Diller’s IAC/InterActiveCorp will be willing to stick by Newsweek/Daily Beast. Word has it the board doesn’t like the business, although Diller’s control of 42.8% of the company votes means he usually gets what he wants. The print publication had an operating loss of about $39.5M in 2009; the Washington Post sold it in 2010 to Harman for $1 along with his assumption of liabilities. But its circulation has continued to fall: It was down 31.6% in 2010 and then 3.4% last year to 1.5M. Meanwhile, the ad-supported online publication is estimated to be losing about $10M a year. (more…)

This article was printed from https://deadline.com/2012/07/newsweek-daily-beast-iac-diller-sidney-harman-306142/