Newsweek relaunches with a bang
Bitcoin report attracts one million page views
Its heavyweight brand and noble journalistic pedigree notwithstanding, Newsweek was for all intents and purposes a moribund publication at the start of this week. Most of its stable of big-name journalists had long since departed, ad revenue had slowed to a trickle and, as a result of cutbacks, the print version had ceased in 2012.
But the hard times are suddenly a distant memory for Newsweek after a spectacularly successful cover story in the inaugural relaunched print version that claims to unmask the mysterious inventor of the virtual-currency bitcoin.
According to the report written by Leah McGrath Goodman, Satoshi Nakamoto is a softspoken 64-year-old model-train enthusiast who lives in a modest suburban home in Los Angeles with his mother.
It’s common knowledge among bitcoin enthusiasts that a man by that name first came up with the concept of the crypto-currency, but because he never came forward publicly, many assumed it was a pseudonym or perhaps that the whole story was a myth. Given the phenomenal growth of bitcoin, it was no surprise the Newsweek report attracted as much attention as it did.
Admittedly, questions have arisen about the veracity of the article and whether Newsweek found the right man, especially after Mr. Nakamoto denied the story, telling a pack of reporters outside his house that he had nothing to do with bitcoin.
But if the object of journalism is to attract readers (advertisers generally follow), Newsweek’s relaunch has succeeded beyond anyone’s wildest dreams. The editors knew they needed to make a splash. They got the equivalent of a tidal wave.
Over the course of Thursday, the unmasking of Mr. Nakamoto quickly became one of the most popular stories on Google News, with other media rushing to capitalize on the story with their own versions. By 5 p.m. on Thursday, the Newsweek article had 700,000 page views, and by Friday afternoon the number had swelled to more than one million, according to Mashable.
Founded 81 years ago, Newsweek was sold to IBT Media last summer, its third owner in as many years, part of a downward spiral that began with the rise of the Internet. It’s storied editorial department that once numbered 150 had dwindled to just 20 and its influence was waning by the time IBT moved in to the magazine’s New York City offices.
IBT is anything but a traditional media company, having staked out its territory in the online world where its flagship International Business Times claims a monthly readership of 13 million, offering a diet of politics, tech news and sex. The company got off to a bumpy start with Newsweek when the Newspaper Guild accused it of labour violations and “illegally muzzling” its employees by preventing them from discussing their working conditions or criticizing their employer.
Presumably that’s water under the bridge after Thursday’s blockbuster cover story. But the questions remain about whether the magazine got it right continue to reverberate, and they could yet turn the relaunch into something other than a story with a happy ending.
In a bid to quell the doubts, Newsweek put out a statement on Friday.
“Newsweek stands strongly behind Ms. Goodman and her article. Ms. Goodman’s reporting was motivated by a search for the truth surrounding a major business story, absent any other agenda. The facts as reported point toward Mr. Nakamoto’s role in the founding of Bitcoin.”
Reuters journalist Felix Salmon summed up the situation nicely in his column on Friday, reminding readers that while Newsweek is sticking to its guns, so is the man who may or may not be the inventor of bitcoin.
“Newsweek wanted a scoop for its relaunch cover story, and boy did it deliver: It uncovered the identity of Satoshi Nakamoto, the inventor of bitcoin. Who then promptly came out and denied everything,” Mr. Salmon wrote.
“Which means that one of the two is wrong: Either Nakamoto is lying through his teeth, or Newsweek has made what is probably the biggest and most embarrassing blunder in its 81-year history.”
We don’t know who’s right either, but we sure hope for the sake of journalism it’s not the alleged genius inventor.