IAC/Interactive (IACI) is unloading a once-popular news magazine it purchased in 2010.
The owner of the International Business Times will acquire Newsweek, which has existed in a digital-only format since the end of last year. Terms of the purchased were not disclosed, but the Washington Post Company (WPO) sold the magazine to Sidney Harman in 2010 for $1, the Associated Press noted.
After buying Newsweek, Harman entered the publication into a joint venture with IAC/Interactive’s Daily Beast website. Barry Diller, chairman of IAC/Interactive would later describe his company’s acquisition of Newsweek as a “mistake.”
Under the terms of its deal with International Business Times, IAC/Interactive will continue to run Newsweek for as long as two months during the transition.
Founded in 1933, Newsweek was acquired by the Washington Post Company in 1961. During its heyday, it competed with Time Magazine and U.S. News and World Report. In 2003, it had a global circulation of 4 million. That tumbled to just 1.5 million by 2010.
Shares of IAC/Interactive climbed more than 2% in Monday morning trading.