The revamped business model at The Deal mirrors those of other financial information companies, such as Thomson Reuters, Bloomberg and McGraw-Hill Cos., whose strongest segment in recent years has been its Standard & Poor's unit. These businesses rely on subscription revenue and have shed properties that depend upon less predictable advertising spending.
Early reaction to The Deal's The Deal Pipeline has been favorable, according to the company. “The Deal Pipeline is an excellent vertical search tool for those who are seeking objective, real-time data and a customized newsfeed on industries that traditionally have been difficult to track efficiently, such as the middle market and private sector,” said Joe Waterman, a financial analyst at Merrill Lynch's private banking and investment group, which has been beta testing the product.
A privately held company backed by U.S. Equity Partners and other private investment funds, The Deal called it's The Deal Pipeline “an ambitious technical project for [a] midsize company.” The company hired Michael Crosby, who previously worked at Thomson Financial, to work on the project.
The Deal Pipeline will specifically include The Daily Deal, a daily newspaper delivered electronically with two editions each weekday, as well as Auction Block, Bankruptcy Insider, Merger Arb Alert and VCDeal.com. Those products will be phased out as separate, individual subscriptions in the first quarter of 2009.
The Deal has already started revamping TheDeal.com to make more free content available. Worth said results of that change have been positive, with a 30% increase in page views.