Insider’s Henry Blodget spotted with Daily Beast executives sparking sale rumors

Insider CEO Henry Blodget was spotted earlier this month at the Daily Beast’s office, sparking speculation that Insider owner Axel Springer was in talks to buy the news site controlled by billionaire Barry Diller, The Post has learned.

Blodget met with Daily Beast CEO Heather Dietrick and editor-in-chief Tracey Connor about two weeks ago at the Frank Gehry-designed beehive-shaped headquarters of Diller’s tech and media conglomerate IAC in New York’s Chelsea neighborhood, according to sources.

“Always a pleasure to visit the amazing MAK building and the charming and talented people inside!” Blodgett told The Post in an email on Wednesday.

Indeed, although Blodget did not visit the office, some of the staff were taken aback by the apparent lack of discretion.

“It’s no surprise that reporters want to know what’s going on behind closed doors regarding sales talks,” a source in the newsroom told The Post. “Of course, it gets a lot easier when Blodget is seen in plain sight.”

IAC, owner of the Daily Beast, did not immediately respond to a request for comment.

Early Wednesday morning, a Daily Beast reporter told colleagues in a Slack message seen by The Post that management had told the newsroom union that there was “no sale at this time.”

There was “high anxiety” among employees after Blodget was spotted in January and rumors of a sale were leaked, the source said.

“Management is silent, but now there are rumors that even management believes that the sale of the Beast is only a matter of time,” the source added.

There are also fears in the newsroom that Blodget will turn a scrappy tabloid site into its data-driven behemoth Insider, which is known for ranking articles by awarding them “impact scores,” an internal measurement meant to reflect how prestigious a story is based on how how much and where it is distributed.

“Blodget at the Beast would be fun,” added another source. “Sir, sir, sir, can I show you my impact points?”

Last month, Dietrick struggled to allay concerns that the site was on lockdown after The New York Times reported that the Daily Beast’s parent company IAC had engaged consulting firm Whisper Advisors to explore a sale.

At the time, Dietrick told staffers in a memo that was leaked to The Post: “Today I wanted to follow up with a New York Times story. It is not surprising that – especially after our success over the past few years – other media companies could show interest in The Daily Beast or that IAC would negotiate.

The CEO added: “I know rumors like this can be disturbing, but I can say with confidence that there is no reason to panic.”

Some employees hope that Diller has become less interested in selling the site in recent weeks. In an interview with PBS earlier this month, Diller praised The Beast’s journalism and said he wants to make sure “there’s always going to be enough funding for it.”

“This is not an easy path. But still, that’s what we have and we’d better cherish it and improve it… and not let it be taken over by any of the extreme forces,” Diller said before addressing the sale rumors.

“I really hope that if we sell it, we will sell it to an enterprise that will grow it, and not deprive it. Which I really don’t want to do. I think I will resist it.”

Axel Springer has made numerous acquisitions in recent years, including a deal to buy Politico in 2021. In 2015, Blodget sold Insider, then known as Business Insider, to Axel Springer for $343 million. a deal to acquire a stake in a left-wing website that would allow Diller to remain a co-owner.

Last year, Blodgett-led Insider partnered with Axios to invest in podcast company Spooler, part of several joint investments between the two companies under the “Axel Springer Insider Ventures” fund. At the time, Blodgett said the new fund was looking for investment.

Diller, whose IAC is known for other successful spin-offs including Expedia and dating empire Match Group, has owned the Daily Beast for 14 years since he co-founded the site with editor Tina Brown.

Although it has a relatively small staff of about 100 journalists, comScore has about 15 million monthly visits, according to comScore. However, the site ran into financial difficulties, turning to digital subscriptions to boost revenue. The company currently charges $4.99 per month for unlimited access to its coverage.

The gossip and news site is the subject of a lawsuit against a former editorial director of Gawker, who sued the company for defamation in 2020. The Daily Beast supported their reporting.

It is reported that Diller’s decision to sell the Daily Beast is due to the fact that the advertising market is pushing media companies. Diller’s IAC acquired from Meredith Corp. many magazines in 2021, including Digital Sites People, Better Homes and Gardens, and Southern Living.

Last year, the IAC said it was shutting down print publications Entertainment Weekly, InStyle, EatingWell, Health, Parents and People en Español. Last month, Dotdash Meredith, the company’s magazine division, said it was laying off roughly 7% of its workforce, representing 274 job cuts.