Daily Beast shows signs of growth under new management

The Daily Beast, a digital news and opinion platform, has marked a significant milestone by reporting its first profitable quarter since its launch. This achievement comes in the third quarter of 2024 and is largely attributed to the strategic leadership of Ben Sherwood and Joanna Coles, who took charge earlier this year.

The publication is backed by Barry Diller’s IAC holding company, which has noted an impressive 81% increase in year-over-year revenue for The Daily Beast. Although IAC does not disclose individual financial details of The Daily Beast—opting instead to categorise it within its “Emerging & Other” business segment—IAC CEO Joey Levin communicated the success in an internal memo. He highlighted the site’s revenue growth and profitability, emphasising its positive performance as a notable achievement.

In April 2024, Sherwood and Coles were entrusted with the task of revitalising The Daily Beast. As part of their compensation, both media veterans secured a 49% stake in the site. Ben Sherwood, with his extensive experience as former president of the Disney ABC Television Group, assumed the roles of publisher and CEO. Joanna Coles, who previously served as chief content officer at Hearst Magazines, took on the position of chief creative and content officer. Their appointment followed informal attempts by Barry Diller to sell the site, which did not materialise.

To steer the publication into a financially stable position, Sherwood and Coles initiated a series of significant operational shifts. This included a voluntary buyout programme designed to reduce expenses by $1.5 million. By early July, these measures had resulted in a 35% reduction in staff, achieved through voluntary buyouts and strategic layoffs.

Discussing their vision for The Daily Beast, Joanna Coles remarked, “Our focus is to be an intelligent tabloid. What we have seen is that the audience responds to sharp, short, relevant pieces.” Sherwood echoed this sentiment, highlighting their commitment to developing a sustainable business model that can support high-quality, independent journalism. He expressed concern about the challenges faced by similar digital outlets, many of which have ceased operations due to financial difficulties.

In a bid to enhance the site’s content offerings and appeal, Sherwood and Coles have enlisted a number of notable contributors. These include comedians and writers like Samantha Bee, Jill Twiss, Jennifer Crittenden, and Gaby Allan; former Twitter CEO Dick Costolo; as well as well-known producers such as Larry Wilmore and Phoebe Robinson. Significantly, Tina Brown, the founding editor of The Daily Beast, has also been brought back into the fold.

The Daily Beast was originally launched in 2008 by Tina Brown and IAC acquired a 50% stake in the merged Newsweek Daily Beast Company shortly after. IAC later acquired a controlling interest before divesting Newsweek in 2013.

Source: Noah Wire Services