Sidney Harman's Family Drops Support of Newsweek, Daily Beast
After the late billionaire's death, "they do not plan to make further capital contributions to the venture, but will remain supportive partners," says an IAC spokesperson.
The family of late billionaire Sidney Harman has pulled its financial support of Newsweek and The Daily Beast.
In an announcement Monday, the Harman clan said it will no longer invest in the publication and its sibling website. Harman's estate had co-owned the media outlets with Barry Diller's IAC.
"The Harman family has indicated to us that due to the death of Sidney Harman, they do not plan to make further capital contributions to the venture, but will remain supportive partners," said an IAC spokesperson, according to The New York Times.
Following Harman's death in April 2011 at age 92 after a diagnosis of acute myeloid leukemia, they retained his 50 percent stake in the joint venture, maintaining a commitment to "active participation and enthusiastic support."
Harman, who bought Newsweek for $1 from the Washington Post Company in August 2010, had pledged to absorb tens of millions of dollars in losses while the magazine was looking to improve its finances. In November of that year, Newsweek merged with the IAC-operated Daily Beast, founded by Tina Brown, who relaunched the struggling title in March 2011.
Earlier this year, IAC reported a loss for Newsweek/The Daily Beast despite strong growth in first-quarter financials for the company's various other websites such as Match.com. There has been a slight dip in circulation -- with an increase in ad revenue -- amid respective estimated losses of $20 million for Newsweek and $10 million for the Daily Beast.
IAC will issue its second-quarter earnings report on Wednesday.