Newsweek, Daily Beast in merger talks: report

Newsweek magazine and the Daily Beast news website are in talks over a possible merger and the likelihood of a deal is increasing, says a media report.

Attributing to news to people familiar with the plan, The Wall Street Journal reported that Newsweek magazine and the Daily Beast news website are deep in talks over a possible combination and the likelihood of a deal is increasing, though some hurdles remain.

A deal would make Daily Beast co-founder and co-owner Tina Brown the editor of Newsweek on top of her existing editorial duties at the website, the report noted.

According to the publication, Stereo tycoon Sidney Harman, who acquired Newsweek from Washington Post Co, has said he did not buy the magazine to make money. He said he bought it because he was drawn to the challenge of turning it around and held strong convictions about how that could happen.

The report that cited a Web analytics company Omniture, said the Daily Beast, on an average, sources 4.6 million visitors a month.

The website is expected to lose about $10 million this year, it said, citing the figures to a person familiar with the matter. However, executives said it was on a pace to be profitable in two years.