• by December 21, 2004

Slate, the online magazine known for its penetrating cultural critique and commentary, has a new home. The Washington Post Co. today announced it will buy the online magazine from Microsoft Corp., which launched the publication more than eight years ago.

The reason for the sale? Although Slate became nominally profitable last year, it has not generated a substantial and consistent profit. But more importantly, Slate doesn't jibe with Microsoft's greater aspirations of cultivating mass, rather than niche audiences, with a broad array of content areas.

Slate, considered by many to be one of the first serious online journalism ventures, was given ample editorial freedom and achieved recognition as a high-profile, well-respected brand apart from Microsoft. It was also a place where Microsoft's MSN could test ad concepts. In November, Slate drew some 5 million unique visitors, according to comScore Media Metrix.

When we first heard rumblings about the Post Co.'s interest in Slate this summer, we must admit we were surprised that Microsoft would entertain thoughts of selling just as the interactive market has picked up, in-stream video advertising is getting hot, and destinations for branded content are stronger than ever. Slate was a crown jewel in Microsoft's kingdom even if it was only a half-carat compared to the company's big gems.

But, as we've heard so many times before, Microsoft is not in the content business. It is, however, in the media business running more than a billion dollar advertising business via MSN. It also has large investments in cable companies. The deal, the financial terms of which were not disclosed, is a coup for the Washington Post Co.'s WashingtonPost.Newsweek Interactive (WPNI) unit which already has two power brands - Newsweek.com and Washingtonpost.com - in its stable.

WPNI has been on the forefront of online journalism and advertising, earning kudos for both its editorial and business prowess. The publications also attract high-profile national advertisers eager to get in front of influentials who flock to them daily. WPNI has successfully touted its influentials positioning in a way that other online publishers haven't.

The sale is bittersweet for Scott Moore, general manager, MSN Network Experience, who served as Slate's publisher from 1999 through 2002. "We built a credible, valuable brand and we proved that quality journalism can work online," Moore says, adding, "We were among the very first Websites that really aspired to do something more than just clicks." While he's sad to see the property leave Microsoft, Moore says he's happy to see it go to one of the "icons of American journalism."

Slate's new publisher, Cliff Sloan, says WPNI will run Slate's business and support functions "just like we do with Washingtonpost.com and Newsweek.com, in terms of ad sales, technology, operations, all the non-editorial functions." Summing up the deal, Sloan, who also serves as vice president of business development and general counsel for WPNI, "We think it's a terrific fit because we've got two premier online pubs in Newsweek.com and Washingtonpost.com, both are superstar publications and both are very attractive to advertisers." Now, "we have a third superstar publication," Sloan says.

Sloan declined to offer projections on ad revenue or traffic other than to say Slate has a "terrific audience that we think will be attractive to advertisers."

While the Minute is sad to see Slate split from Microsoft, (it was always fun to think of the pub as the company's renegade), it could not be going to a better place. With leadership from Caroline Little, CEO-publisher, WPNI; Sloan; and Jacob Weisberg, Slate's editor-in-chief who continues at the helm, there is nothing but opportunity ahead. So we suspect 2005 will be an exciting year for this group and we look forward to seeing what comes next.

Congratulations to all.