People Incorporated, which was previously known as IAC, is considering a sale of The Daily Beast as it refocuses its portfolio on People Inc. and MGM.
This update, which was first reported by Axios, follows the publishing company’s prior effort to offload The Daily Beast several years back. However, the company chose not to sell the outlet at the time, as it instead tapped new leadership to step in to try to help revive the business.
Specifically, in 2024, chairman Barry Diller brought on Ben Sherwood, ABC Television Group’s former president, and Joanna Coles, the former content chief at Hearst Magazines, to run the outlet.
Per Axios, given The Daily Beast is now profitable, People Incorporated has decided to explore possible sale options. While conversations are said to be “serious,” it isn’t being described as “immediate.”
Prior to Sherwood and Coles being brought on board, The Daily Beast reportedly lost $11 million in 2023. To help turn the business around, Sherwood and Coles offered voluntary buyouts and shifted the business model away from being reliant on banner ads.
The company now boasts a number of revenue avenues, from podcasts to subscriptions to syndication.
As for People Incorporated, the company has been open about its plans to do away with “non-core holdings,” choosing instead to focus on its lifestyle publishing and experience economy. For instance, in March, People Incorporated (then IAC) shared they were selling Care.com to Pacific Avenue Capital Partners, a global private equity firm.
“We’ve been clear on our plan to sharpen IAC’s strategic focus on People Inc. and our MGM stake, while opportunistically monetizing non-core holdings to simplify our portfolio and enhance financial flexibility,” Christopher Halpin, the company’s executive vice president, COO and CFO, said at the time.
Then, In June, the company offered $48.30 per share to acquire the remaining stake in MGM.
Given Sherwood and Coles, as well as Daily Beast President Keith Bonnici, scooped up a minority stake in the publication, there’s a possibility that the three of them could explore the option to buyout the current owners.
Time will tell, it seems.
The post People Incorporated Eyes Sale of The Daily Beast appeared first on TheWrap.
