Scoop: People Incorporated explores sale of The Daily Beast again
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Ben Sherwood and Joanna Coles. Photos: Alberto E. Rodriguez/Getty Images and Dia Dipasupil/Getty Images
People Incorporated, formerly known as IAC, is exploring a possible sale of The Daily Beast as it looks to focus its portfolio around People Inc. and MGM, sources told Axios.
Why it matters: The company was looking to sell the outlet several years ago, but instead installed new leadership to try to turn the business around.
State of play: Now that the site is profitable, it's taking the venture back to the market.
- Conversations about a sale are serious but not necessarily immediate, a source said.
Catch up quick: Barry Diller, People Incorporated's founder and chair, tapped Ben Sherwood, the former president of Disney's ABC Television Group, and Joanna Coles, the former Hearst Magazines content chief, to run The Daily Beast in 2024.
- At the time, the outlet was on track to lose more than eight figures, Axios reported.
- A source told Axios that The Daily Beast lost $11 million in 2023.
Zoom in: To get the outlet to profitability, Sherwood and Coles instituted voluntary buyouts in 2024 while making product changes to shift the company's business away from being overly reliant on banner ads.
- Prior to their arrival, the majority of revenue came from selling ads on The Daily Beast's website. Today, that represents less than a quarter of revenue, a source said.
- The company's business is now more diversified across different revenue streams, including podcasts, subscriptions and syndication.
Between the lines: People Incorporated has been vocal about shedding non-core assets to focus on its lifestyle publishing and experiences businesses.
- In March, it announced a deal to sell Care.com to a private investment group.
- In June, it offered to buy out the remaining stake in MGM Resorts International that it doesn't already own (roughly 74%) for $48.30 per share.
Of note: Sherwood, Coles and Daily Beast president Keith Bonnici were given a minority stake in the outlet when they were hired to revive it. It's possible they could pursue a management buyout.
- Representatives from The Daily Beast and People Incorporated did not comment.
Zoom out: Sherwood and Coles have pushed to bring the 18-year-old publication back to its roots as an intelligent tabloid that wins buzzy scoops relevant to culture, business and politics.
- The publication, founded in 2008 by Tina Brown, merged with Newsweek magazine in 2010, but then separated from the company when IAC sold Newsweek in 2013.
- In the past few years, its coverage has focused on original stories covering topics such as the health of major politicians and ICE contracts.
