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| Company type | Subsidiary |
|---|---|
| Industry | Communications |
| Founded | August 3, 1954; 70 years ago (1954-08-03) |
| Founder | Herbert Muschel |
| Headquarters | 300 S Riverside Plaza,, United States |
Area served | Worldwide |
Key people | Cali Tran (CEO)Matt Brown (President) |
| Services | Newswire distribution |
| Parent |
|
| Website | www |
PR Newswire is a distributor ofpress releases headquartered inChicago.[1] The service was created in 1954 to allow companies to electronically send press releases to news organizations, usingteleprinters at first. The founder,Herbert Muschel, operated the service from his house inManhattan for approximately 15 years. The business was eventually sold toWestern Union and thenUnited Newspapers ofLondon.[2] In December 2015,Cision Inc. announced it would acquire the company.[3] On January 1, 2021, Cision formally merged PR Newswire into the company.
PR Newswire was founded in March 1954 by Herbert Muschel, who ran the business from his town house inNew York City for the first 15 years of its operation.[4][2] The company usedtelecommunications lines andteleprinters owned byWestern Union to distribute content to a dozen news organizations in New York.[2] Its first customer wasTrans World Airlines.[2]
In 1963, Muschel recruitedDavid Steinberg of theNew York Herald Tribune to take a management position with the company after the1962–1963 New York City newspaper strike.[5] Muschel had been impressed by Steinberg's use of the service to report financial news during the strike without using reporters.[5]
Muschel sold 81% of the company toWestern Union in 1970 for over 60 thousand shares ofletter stock,[6] with Muschel and Steinberg continuing to manage the company after the acquisition.[7] Steinberg served as vice president and chief of operations, and became president of the company in 1976.[5][8]
In 1977, PR Newswire began using electronic terminals forcopy editing.[9][10]
By 1978, PR Newswire distributed content to approximately 250 news points and financial institutions in 75 cities using 12,000 miles of private transmission lines.[5] In addition to its New York headquarters, the service also sent content from offices inBoston,Miami,Los Angeles, andSan Francisco at a rate of 150 words per minute.[5]
In 1982, the company was sold toUnited Newspapers of London for $9.5 million.[11] PR Newswire acquired Mediawire in 1983, expanding the company's reach into over 125 newsrooms inPennsylvania,Delaware,New Jersey,Maryland, andWest Virginia.[11] The company acquired Intermedia Group in 1985, incorporating its regional news wires inWashington, D.C.,Michigan,Ohio, andGeorgia.[12]
ABC-TV and Indesys partnered with PR Newswire in 1989 to provide news feeds to television and entertainment editors and writers in the U.S. andCanada.[13] Program changes, production schedules, and news from entertainment sources were transmitted over a satellite distribution network and an FMsubcarrier.[13]
Steinberg retired in 1992, but continued as vice chairman until 2002.[14] During his tenure, the service became a state-of-the-art communications network with 700 employees.[14]
In 2000 the company acquired eWatch, founded in 1995 as an automated service to monitorwebsites,chat rooms,Usenet groups, web publications, online serviceforums and investormessage boards for mentions of a specific organization, issue, product or service. In 2001, PR Newswire issued a multimedia news release forTouchstone Pictures promoting the filmPearl Harbor, which includedb-roll,soundbites, high resolution images, andfilm trailer.[15] On April 17, 2007, PR Newswire acquired Vintage Filings.[16]
In December 2008, PR Newswire moved itsNew York City corporate headquarters fromMidtown Manhattan toLower Manhattan, at 350 Hudson Street.[17] In mid-2009, PR Newswire acquired The Fuel Team.[18] The largest competitor to PR Newswire isBusiness Wire, as of 2014[update].[19] On December 15, 2015, PR Newswire was sold to global media intelligence company, Cision, for$841 million.[3] The transaction, which required approval by the shareholders of UBM plc as well as regulatory approvals, was expected to close late in the first quarter of 2016. As of June 2016[update] (closing date of the deal) it became a subsidiary of Cision.[1]
In the 2010s, PR Newswire and its competitor Business Wire were the target of extensive successful attacks by Ukrainian hackers, who accessed not yet published press releases to enableinsider trading.[20] According to the FBI, the case was then the world's largest known computer hacking and securities fraud, with profits exceeding $100 million in trades that were made public by the SEC, but believed to be vastly higher than that by the authorities. Fewer than half of over 100 suspects involved had been arrested as of 2018.[20]
ProfNet is an online community of communications professionals made to provide reporters access to expert sources and a subsidiary of PR Newswire. ProfNet was founded in 1992 by Dan Forbush, then an administrator atSUNY Stony Brook.[21] The original pilot program operated onCompuServe.[21] After the university changed administrations in 1994, Forbush was unable to convince them to continue running the service.[22] Forbush privatized ProfNet in 1995 and sold it to PR Newswire in March 1996.[21] As a commercial service, ProfNet began charging institutions to participate.[23][24] By the end of the following year, the distribution list included 2,800 contacts, mostly affiliated with colleges and universities.[22] Other contacts worked at industrial laboratories likeBell Labs and societies like theAmerican Association for the Advancement of Science.[25] Many contacts werespokespeople for their institutions, rather than subject-matter experts themselves.[26][27]
