360° Coverage : Controversy marks Newsweek's comeback

2 Updates

Controversy marks Newsweek's comeback

Mar 7 2014, 9:34pm CST | by

NEW YORK (AP) — A mystery man. A splashy reveal. A media frenzy. Newsweek staked its return from the dead on a story it knew would get attention. A cover story claiming it had...

Filed under: news

 
 
 

28 weeks ago

Controversy marks Newsweek's comeback

Mar 7 2014, 9:34pm CST | by

NEW YORK (AP) — A mystery man. A splashy reveal. A media frenzy. Newsweek staked its return from the dead on a story it knew would get attention. A cover story claiming it had uncovered "the face behind bitcoin," the world's most popular digital currency.

It got plenty of attention, alright.

Twenty-four hours after identifying bitcoin's creator as a 64-year-old former defense contractor employee living in Los Angeles, the controversy over whether or not Newsweek had outed the right man was so furious that Newsweek reporter Leah McGrath Goodman made the rounds on Bloomberg TV and CBS Morning News to defend her reporting against Dorian Nakamoto's denials that he is the father of bitcoin. The magazine issued a statement standing by the story and said it had to hire a security detail for Goodman because of threats made against her.

In the comments section under Newsweek's statement backing the piece many people suggested the magazine had jumped the gun by publishing the story before it was fully reported out. Newsweek said Goodman's research was conducted under the same high standards that have guided Newsweek for more than 80 years, and that it expected the story, like any major news revelation, to spark controversy. Saying he was prepared for the "shitstorm," Newsweek editor in chief Jim Impoco told digital network Mashable on Friday that he remains confident in the story as reported and didn't see a need to frame the article more skeptically.

"Go large or go home. This is Newsweek," Impoco told Mashable. "We are raising the dead here. And you know what? People are aware of it now."

Newsweek had been struggling for years when The Washington Post Co. sold it in 2010 for $1 to stereo equipment magnate Sidney Harman. Before he died the following year, Harman married Newsweek to IAC/InterActiveCorp's The Daily Beast website, with Tina Brown as editor, in a move intended to help widen its online audience. The plan failed, and Newsweek canceled its print edition at the end of 2012. The online magazine was sold to IBT, which owns Web publications including International Business Times, Medical Daily and Latin Times, last August for an undisclosed sum. This week it launched its comeback in print.

Since its inception, bitcoin's creator has been known only as "Satoshi Nakamoto," which many observers have believed to be a pseudonym for one or more people. In its debut cover story Thursday, Newsweek detailed its search for the mysterious Nakamoto. It claimed it found Dorian Prentice Satoshi Nakamoto living in Temple City, Calif. Born in Japan but raised in the U.S., the engineer had worked on missile systems for the U.S. Navy and Air Force, and was employed by the Federal Aviation Administration starting around 1999, but was laid off following the Sept. 11, 2001 attacks.

"Somebody founded bitcoin," Impoco told The Associated Press on Friday. "It's the most influential crypto-currency out there. A lot of people tried to find him and we think we found him."

The Newsweek story begins with a conversation about bitcoin between Nakamoto and Goodman on the front steps of his Los Angeles County home, in the presence of two sheriff's deputies that Nakamoto had called after finding Goodman sitting on his front porch. It quotes Nakamoto as saying, "I am no longer involved in that and I cannot discuss it."

The two L.A. County sheriff's deputies confirmed Friday that they were present for the brief conversation and that the quotes as published by Newsweek are accurate. But Nakamoto, in an interview with The Associated Press on Thursday, said that Goodman misunderstood him. He said he was referring to no longer being involved in engineering, not in bitcoin.

On CBS This Morning on Friday, Goodman fought back, saying that's not what happened and that he definitely acknowledged bitcoin.

Goodman told Bloomberg TV that the detail she reported was "100 percent correct, all the research was true and the story and all the backup research." But she went on to say that forensic research isn't about supporting what you think is true.

"You are eliminating candidates. We cannot eliminate this man at all. And in my confrontation with him he confirmed his involvement," she said. Pressed as to whether Nakamoto actually told her that he created bitcoin, Goodman admitted that he did not, only that he said he was no longer involved. The police shut down the conversation after that, she said.

What's left is a mystery: Goodman may be right, and may have scored an important scoop. Or she may not have. Newsweek's credibility, and longevity, may hinge on the outcome.

Controversy is a risky strategy but in a harsh publishing world for general interest magazines, it may be the best approach for long-term survival, said David Renard, author of "The Last Magazine" and partner in the research firm mediaIDEAS.

"In the industry these days any attention, whether good or bad, gets more faces looking at your product," Renard said.

"They needed to make a splash. If it should blow up on them, then they're reborn under a bad star, with what would be a terrible start," said Ken Doctor, a media analyst for consulting company Outsell. "If the story holds, it's wonderful for them because they need a lot of attention."

___

Reporter Tami Abdollah contributed to this story from Los Angeles.

Source: AP Business

 
Update
2

3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the w ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the doub ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Thousands of South Sudanese kids face starvation: Unicef
United Nations, Sep 23 (IANS) Thousands of children, up to five years age, are at a risk of dying from malnutrition in South Sudan, the Unicef has warned.
 
 
'Ebola could hit up to 1.4 mn West Africans'
Washington, Sep 23 (IANS) The number of Ebola cases in West Africa could reach as many as 550,000 to 1.4 million by Jan 20 in the worst-case scenario, the US Centers for Disease Control and Prevention ( CDC) warned in a report Tuesday.
 
 
London turns world's most expensive city
London, Sep 23 (IANS) London has overtaken Hong Kong as the world's most expensive city to live and work in, as a new study has suggested it has turned nearly twice as pricey as Sydney and four times more expensive than Rio de Janeiro. India's Mumbai was found to be at the bottom of the 12 most expensive cities report.
 
 
Woolly mammoth skeleton to be auctioned in Britain
London, Sep 23 (IANS) A woolly mammoth skeleton, having remained a part of a private collection for years in Europe, is all set to be auctioned in Britain.
 
 
 

Latest from the Network

Sarah Silverman isn't jealous
Sarah Silverman thinks Michael Sheen's ex-girlfriend Kate Beckinsale is ''so beautiful.'' The 43-year-old comedienne insists she isn't jealous of her boyfriend's close friendship with the British actress, whom he dated...
Read more on Celebrity Balla
 
Gwyneth Paltrow still has 'control' over Chris Martin
Gwyneth Paltrow has drawn up a rota for Chris Martin and their children. The 'Iron Man 3' actress, who split from the Coldplay frontman in March after 10 years of marriage, reportedly wants to make sure he doesn't...
Read more on Celebrity Balla
 
Kris and Bruce Jenner split $60 million fortune
Kris and Bruce Jenner have divided their $60 million fortune equally. The former couple, who filed for divorce this week after announcing their split last October after 23 years of marriage, reportedly had no problem...
Read more on Celebrity Balla
 
All parties must abide by UN charter in Syria: Ban
United Nations, Sep 24 (IANS) All measures to fight terrorist groups operating in Syria must be fully in line with the Charter of the United Nations and strictly in accordance with the international humanitarian law,...
Read more on Politics Balla
 
Kanye West back to college
Los Angeles, Sep 24 (IANS) Rapper Kanye West made a surprise appearance at a college here and shared his views on the importance of education. The 37-year-old spent over two hours at the digital communications...
Read more on Celebrity Balla
 
Libyan groups strike back on Islamist militants
Tripoli, Sep 24 (IANS) Libya's pro-secular militias from Zintan counterattacked the Islamist militants Tuesday near capital Tripoli, military sources said. Zintan militia commander Jilani Aldahish said their fighters...
Read more on Politics Balla
 
IS executes rights activist in Iraq
Baghdad, Sep 24 (IANS/EFE) The Islamic State (IS) Sunni extremist group executed rights activist Samira Saleh Ali al-Neaimi in a central square of north Iraq's Mosul city Tuesday, a week after she was detained for her...
Read more on Politics Balla
 
Spain's El Hierro island named Unesco Geopark
Madrid, Sep 23 (IANS) The island of El Hierro, one of the Spanish owned Canary Islands in the Atlantic Ocean off the coast of West Africa, has been named as a Geopark by Unesco. El Hierro will be the 60th Unesco...
Read more on Politics Balla
 
Assad reaffirms counter-terrorism efforts
Damascus, Sep 24 (IANS) Syrian President Bashar al-Assad Tuesday reiterated that his administration was moving forward in battling terrorism in the region. The president made the remarks during his meeting with the...
Read more on Politics Balla
 
China to announce post-2020 climate actions soon
United Nations, Sep 23 (IANS) China will announce its post-2020 actions on climate change as soon as possible, which will lead to "marked progress" in reducing carbon intensity, increasing the share of non-fossil fuels...
Read more on Politics Balla