In an era where takeovers, and acquisitions are a daily occurrence in the media publishing industry this one comes as no surprise to me, however the buyer is a bit of a surprise to industry insiders.
Bloomberg LP, the global financial data and news empire created by New York City Mayor Michael R. Bloomberg, is the winning bidder for BusinessWeek.
Terms of the offer will not be disclosed by Bloomberg and BusinessWeek parent McGraw-Hill Cos. But knowledgeable sources say that Bloombergâ€™s cash offer is in the $2 million to $5 million range and that it has agreed to assume liabilities, including potential severance payments. It remains to be seen how much of the magazineâ€™s 400-plus staff Bloomberg plans to cut, but reports of a planned scorched earth campaign are overblown, say sources.
Source: Business Week