…was made by Tina Brown when she said this about Newsweek:
but when will the operation be profitable?
The Daily Beast, Brown reminded her questioner, was conceived in 2008 on a five-year business plan, “on which we are very, very handsomely along the way.” Newsweek, meanwhile, “is an iconic global brand,” one that landed 40 new ad campaigns in 40 days earlier this year, she said, “so we have absolute confidence, given this new world we’re in, given the energy of the Daily Beast digital brand, that we can reactivate Newsweek.”
And now for the short answer: “In the next two to three years,” she said. Kelly repeated her response for confirmation; Brown nodded.emphasis mine
Tina Brown is going to make Newsweek profitable? the lady who managed to lose a combined 122 million between the New Yorker and Talk in 5 years, (that’s an average of over 24 million a year of other people money)
Stacy McCain reminds of us the track record here:
The New Yorker reportedly lost $42 million in three years (1995-97) under Ms. Brown’s editorship. Talk lost an impressive $80 million during its two-year existence.
And makes this prediction:
Brown’s business model is obviously the same as Arianna Huffington’s: An updated online version of the old reliable pump-and-dump. Carve out a slice of online readership, then sell those “eyes” to some larger entity.
Arianna sold HuffPo to AOL. To whom will Tina sell Newsbeast?
In my Opinion both Stacy’s suggestion and my own suggestions are likely to bring you are better cash return than Tina Brown. That is a given but what Stacy isn’t taking into account is profit is not the goal of those who invest with Tina Brown….
…She is part of a club, an elite; in this way she resembles the French Elites who are now defending Dominique Strauss-Kahn. It’s all about the parties.
When a company buys an ad on my Radio show, it is with the goal is to attract customers to make a profit, when people invest in Tina Brown, their return is to be part of that “In” crowd. To be invited to the party, to be able to say to people: “Oh yes I was at that event with Tina, we met Bernard Henri-Levy and we had a marvelous time.”
It’s all about being a member, Invest in Tina Brown and you can hobnob with the great, invest in DaTechGuy on DaRadio and you might join the Axis of Fedora but that won’t get you invited to anything but my Christmas Open House.
Tina Brown is giving her investors the return they want, it just isn’t money.
Update: Not directly the same but Sissy Willis on The Importance of Being Noticed.