Daily Beast, Newsweek Merge Talks Break Down
The potential merger between the Daily Beast and Newsweek is off, insiders tell the Wall Street Journal.
Daily Beast editor Tina Brown; Barry Diller, chairman and chief executive of IAC/InterActive Corp., which owns the news website, and new Newsweek owner Sidney Harman couldn't agree on how to split up governance and editorial control, the paper said.
Reps for the Daily Beast and Newsweek didn't comment.
Harmon recently purchased Newsweek from the Washington Post. Co. for $1. He now needs to find an editor for the newsweekly, which is expected to lose $20 million this year.
The two-year-old Daily Beast will lose about about $10 million this year, a source told the WSJ. Executives from the website have said the site will be profitable within the next two years.