Business 2.0 closing

Time Inc. is closing down Business 2.0, a monthly magazine about the "new economy" and will absorb part of its San Francisco-based staff into Fortune magazine. Since the magazine was founded in 1999, it has lost about US$110 million. Time Warner (as it was) bought the-then biweekly title in 2001 for US$68 million from the British company that started it and merged it with its struggling startup e Company Now, according to a story in the New York Times.

In recent months, there has been a lot of speculation about the magazine's future, based on its downward spiral in advertising support.

Reportedly, Time Inc. turned down an offer from Business 2.0 rival Fast Company (Mansuetto Ventures) to acquire the title and its list of 600,000 subscribers.

Advertising Age said the move had several interesting implications, including the possibility that the small business focus of Business 2.0 might enliven the rather ponderous Fortune. It said "the move is the first from Vivek Shah since he was named president of the Time Inc. Business and Finance Network in June. It wouldn't be surprising if Mr. Shah had further moves planned, possibly including a reorganization of the struggling group."