In the media world most people associate 'online' with efficient, and this demonstrates that it isn't necessarily true. There is still a lot of competitive pressure if all you are doing is running a fat organization and replacing paper with a web server.
Ziff apparently only paid $100M for the business[2] (News paid $600M+ only years ago) and IGN has 53 million unique visitors (in a high yield demographic - young males) across their properties, yet they couldn't make the business model work. Demonstrates just how 'thin' the new media businesses have to become in order to survive and the challenge that old media companies are facing.
[0] http://investor.j2global.com/releasedetail.cfm?ReleaseID=737...
[1] http://kotaku.com/5986027/ziff-davis-shuts-1up-gamespy-and-u...
[2] http://pandodaily.com/2013/02/01/sources-ziff-davis-is-close...