Newsweek magazine is merging with The Daily Beast. The Daily Beast is an online news website that is owned by InterActiveCorp that is run by Tina Brown. The joint venture will be called the Newsweek Daily Beast Company. The Newsweek Daily Beast Company is owned equally by IAC and Sidney Harman (Newsweek owner).
The Washington Post Company sold Newsweek for $1 plus $40 million in debt to Sidney Harman. Tina Brown will become the editor in chief at Newsweek Daily Beast Company.
This announcement arrives at a time shortly after talks were abandoned recently. Newsweek is losing about $20 million per year and The Daily Beast is expected to lose about $10 million this year.