News aggregator traffic falls, Forbes deal in peril over reported Russian ties – weekly news digest

Referral traffic from news aggregators to news publishers’ websites has gone down as a share of total traffic globally, Digiday reports.

According to data by analytics company Chartbeat based on some 5,500 sites, news aggregators traffic decreased in proportion to our sources from 18-20% in 2020 to 13.6-15% in 2023. Potential reasons for the fall might include the fact that some of these services have “hit that saturation point where… their overall user base has started to level off” Chartbeat’s executive told Digiday. Besides, local stories tend to perform more poorly on aggregator platforms as opposed to major international events. 

“As news aggregators’ role in driving referral traffic to publishers’ sites declines, some publishers are reconsidering the value of these platforms”, Digiday writes, and are focusing on the platforms where they have more control over data and a more direct connection with their audience, including newsletters, apps, and events.

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The purchase of global Forbes led by billionaire Austin Russell has hit a snag as Russel struggles to secure financing for the deal and more reports of potential Russian ties have emerged. 

This week, Forbes’ current owner granted Russel’s request to extend the deadline to finalize his $800 million bid by two weeks, Axios reports. “Russell’s bid values the company at $800 million, a considerable premium over previous valuations… But finding new investors at that price is challenging, and a number of strategic investors have passed on the Forbes deal because the valuation is too high”, Sara Fischer writes for Axios.

The upcoming deal has also been overshadowed by reports of the investors’ Russian ties. In October The Washington Post reported that Russian tycoon Magomed Musaev had privately bragged he was behind the purchase of Forbes (the exact extent of Musaev’s involvement and whether he was telling the truth at all is not clear from the reporting).

The reports have caused concern among regulators, as well as among the company’s staff. “Forbes journalists have told the publication’s management that some sources are refusing to share sensitive information with them due to their new reported ownership”, Semafor reported recently. 

Quick links — Three more news stories worth your attention:

• Press Gazette: UK ad spend to grow in 2023 – but only the tech giants will benefit 
• Financial Times: UK culture secretary seeks to strengthen BBC governance 
• Axios: The Guardian rips Microsoft for distasteful generative AI poll about death 

Source of the cover photo: https://www.flickr.com

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