Tina Brown says The Daily Beast website is on track to be profitable this year, but Lucia Moses points out that getting the combined NewsBeast into the black by early 2013 — Daily Beast backer Barry Diller insists that’s possible — will be a daunting task. “If that task takes years and Newsweek can’t find a way to regain the relevance weekly newsmagazines have lost since the explosion of news on the Internet, then Diller and Jane Harman, Sidney Harman’s widow, could reach the point where they finally decide to cut bait,” she writes. “The idea that NewsBeast could ever become a successful operation has always seemed far-fetched.” On the bright side, Newsweek’s newsstand sales are up under Tina Brown, “but newsstand sales are only 3 percent of the magazine’s circulation, and they don’t make it much money,” notes Moses. Reed Phillips, managing partner at media investment bank DeSilva+Phillips, tells her:
I don’t think it’s a quick turnaround.