October 19: Business Briefs

FRIDAY, OCT. 19: After almost 80 years, US weekly magazine Newsweek is ending its print publication.

Once viewed as a leader in its field of news and analysis, it was able to boast millions of readers. Now, though, it has succumbed to the Internet age.

Along with traditional rival Time Magazine, Newsweek has experienced a dramatic decline in traditional advertising, prompting a move to an all-digital format. Recently the magazine was merged with website The Daily Beast and, as reported by nytimes.com, the new online version will be called Newsweek Global and will work on a paid subscription format. It also reported the magazine as making losses of $40 million a year.

Tina Brown, the founder of The Daily Beast website and the driving force behind its merger with Newsweek, announced the move yesterday in a message on The Daily Beast co-written with Baba Shetty, the recently hired chief executive.

Ms Brown wrote: “We are announcing this morning an important development at Newsweek and The Daily Beast.

“Newsweek will transition to an all-digital format in early 2013. As part of this transition, the last print edition in the United States will be our December 31 issue.” She added: “Regrettably we anticipate staff reductions and the streamlining of our editorial and business operations both here in the US and internationally.” n

Morgan Stanley loss

Wall Street Bank Morgan Stanley has posted third-quarter losses of $1billion.

However, much of this loss is, according to various reports, down to a change in value over their debt.

For the quarter the bank’s figures compare badly with the year-earlier profit of $2.2 billion but it comes at a time when Morgan Stanley is changing its position. Along with its investment banking and trading firm, the bank is emphasizing its new role as a wealth manager.

In September it completed a $1.89 billion purchase of 14 per cent of Morgan Stanley Smith Barney brokerage from Citigroup Inc., taking its stake to 65 per cent.  This is expected, say forecasters, to reap $53.5 billion in deposits by 2015.

Taking the debt valuation changes out of the equation, the bank’s revenue was actually up 18 per cent to $7.55 billion.