What Will Happen To Business Week?

by Jay Deragon on 11/16/2009

BusinessWeek LogoMcGraw-Hill recently decided to sell Business Week. The buyer is Bloomberg LP but the future of Business Week is in limbo as are the jobs of all that work there. The price has not been  disclosed but the value of  Business Weeks assets are more than the purchase price. Does Bloomberg LP view the value appropriately?

First Lets Look at Business Week’s History

Business Week is a global source of essential business insight that inspires leaders to turn ideas into action.  Through content, context, and collaboration,  Business Week  moderates global conversations and moves business professionals forward. Founded in 1929 and published by the McGraw-Hill Companies, BusinessWeek magazine is the market leader, with more than 4.7 million readers each week in 140 countries.

BusinessWeek.com (BW.com) was launched on America Online in December 1994, and on the World Wide Web in August 1996. BW.com’s B-Schools Channel won a prestigious National Magazine Award in both 2007 and 2008, for personal service online. BW.com  produces much original journalism, with new stories posted multiple times a day, as well as a dozen regular podcasts, 28 staff-written blogs, multimedia slide shows, video reports, and interactive features. BW.com also uses aggregation and Web 2.0 social media to engage its audience in a deep and meaningful way.

Business Exchange. In 2008, BusinessWeek launched the Business Exchange, an innovative online offering that aims to better serve the evolving information needs of business professionals. Delivering to a high-income and highly educated audience, BusinessWeek.com is the preeminent provider of decision-making global business news, information, and services. The site attracts 9.2 million monthly users.

The Attraction

Traffic represents attraction of a market which creates engagement of people and things, a transaction.

Google’s whole economic value is fueled by the hits economy, traffic.  While most of the major media has “gone social“ Business Week has went the extra mile with Business Exchange and its strategic alliance with LinkedIn.

As we can see by the above chart  Facebook’s traffic pattern demonstrates the highest rate of change compared to Business Week, Wall Street Journal, Twitter and Business Exchange. Facebook’s market cap is now over $10 Billion, Twitters is over $1 Billion as is LinkedIn. However, the value of traffic alone doesn’t show the economic value of  quality traffic. What will the Price be for Business Week?

It will be interesting to see how Bloomberg LP values Business Week. It will be even more interesting to see what they do with it.  Could Business Week become the “LinkedIn” of business content by vertical market? Should Bloomberg LP also buy LinkedIn and merge them with Business Week to create LinkedIn Business? Business drives commerce. Commerce is what fuels an economy. Business Week’s traffic is centric to business markets learning what is influencing markets and what innovation is on the horizon.

The qualitative value of Business Weeks traffic represents the economic power that fuels our economy. You can’t say the same for Facebook or Twitter.

Comparing Old Media vs. New Media

Lets look at Business Weeks initiative called Business Exchange, a portal of blogs added to a taxonomy of business subjects. Now look at the charts illustrating the growth of Business Exchange. Do you see the obvious? Statistically speaking the growth rate  of change for the Business Exchange represents significant value  the quality of the traffic creates. Rate of change is the factor of conversational currency.  A bank makes money based in the rate of change in interest using other peoples money. Conversational currency drives a rate of change in interest.

Quality traffic precedes relationships and business transactions follow relationships. Business Exchange has grown exponentially because of the quality of media created by business people discussing business issues and not by useless chatter.  The journalist from Business Week and elsewhere are learning from the Business Exchange model.  Learning is an attraction that pulls markets. Business markets are where transaction happen. Useless chatter doesn’t create economic transactions.

John Byrne’s, Editor in Chief of Business Week, and his team engineered Business Exchange as well as a strategic relationship with Linkedin.  The value of Business Week comes from the quality of thinking provided by leadership, management and the staff that supports the enterprise. The quality of Business Week’s content, both on-line and off-line is what provides markets with insights and knowledge.

The debate over the future of publishing and how to create revenue, besides advertising, continues.  Since content is an influence over markets maybe a new model will emerge which monetizes information, influence, ideas, talent and conversations.  The actions taken by an audience as a result of content that is in context to their wants and needs creates value for a marketplace of consumption.  The value of content consumption has yet been quantified, qualified or monetized.

The future of Business Week will defined by the people who lead and manage the “social capital” created by what Business Week has done in the past.  Innovation that creates a new economic model for content  consumption will likely come from the markets that consume it and the people who manage it.  Business Week has the right market, the quality traffic and the right people who can lead it to the next generation. Lets hope that Bloomberg LP sees and understands that it’s the people who create the value. Time will tell.

What’s your opinion?

{ 12 comments }

Mark Harai November 20, 2009 at 6:08 am

RT @JDeragon The Value Of Business Week | The Relationship Economy…… http://bit.ly/44rg4z

ingenesist November 17, 2009 at 2:07 pm

RT @JDeragon The Value Of Business Week | The Relationship Economy…… http://bit.ly/44rg4z

JDeragon November 16, 2009 at 7:04 pm

asked "What Will Happen to Business Week?"http://www.relationship-economy.com/?p=7563

JDeragon November 16, 2009 at 1:04 pm

asked "What Will Happen to Business Week?"http://www.relationship-economy.com/?p=7563

Dan November 16, 2009 at 12:55 pm

Jay;

Great post. To me BX represents a knowledge inventory. All the categories are sourced by the users. All of the articles are sourced and often written by the users. All the trending data is produced by the users.

Now, when you compare what’s trending on BX and you compare what is “editorialized” in the mainstream media…and they are different, an important conclusion can be made. What people care about and what is passed off as “news” are too often quite different from the other. Herein lies the apex of the social media divide.

Bloomberg has an incredible opportunity ahead of them and the question is whether they will develop BX to the highest standard of transparency and promote it to the highest level of editorialized influence or will they squander an astonishing resource.

At the end of the day, whoever created BX and those who support the BX process got something right in an environment when so much is going wrong for journalism. These people are precisely the astonishing resource we all owe a debt of gratitude. I call it Journalism at it’s 21st Century best. Let’s hope that Bloomberg can look away from the old days and look into the future. BX rocks.
.-= Dan´s last blog ..Can Twitter Fuel a Run on the Banks? =-.

Business 3.0 Tech. November 16, 2009 at 11:34 am

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Dale Lawrence November 16, 2009 at 8:11 am

RT @JDeragon The Value Of Business Week | The Relationship Economy…… http://bit.ly/44rg4z

The Social CEO November 16, 2009 at 7:04 am

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JobShoots November 16, 2009 at 6:58 am

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Brendan McManus November 16, 2009 at 6:57 am

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smconnection November 16, 2009 at 5:36 am

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prblogs November 16, 2009 at 5:33 am

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