Rupert Murdoch's News Corp. Puts iPad Paper The Daily on Notice (Report)
The conglomerate is considering if it can turn around the publication's annual losses of $30 million as it plans to separate its publishing and entertainment business.
LONDON - Rupert Murdoch's News Corp. has put iPad newspaper The Daily on notice and will decide its future as it prepares to split up its businesses, the New York Times reported.
The look at the longer-term viability of The Daily, which Murdoch previously described as a potential digital savior of the newspaper industry, comes as News Corp. prepares for its recently announced separation of its publishing and entertainment businesses.
The New York Observer had first reported that the industry's first tablet daily was warned by News Corp., which will have to decide whether it can turn around annual losses estimated at around $30 million.
The Daily, launched in early 2011 amid the early stages of growth in tablet sales and usage, would be part of the future separate publishing business, which analysts say will be a smaller-growth asset.
Veteran media executive Greg Clayman, who oversees The Daily as publisher, told the Times earlier this year that the iPad paper was on track to break even in five years.
In February, The Daily said it had 100,000 subscribers who pay 99 cents a week or $39.99 a year.
The Times quoted a person familiar with the situation as saying that News Corp. will also scrutinize other smaller ventures in the coming weeks as management and business consultants look to set up a healthy publishing company via the company split.