I don't know how this could ever be considered a smart move.
The print media is fading, the technology for tablets is getting better and better, and the experience of reading a magazine is changing. Add that to the fact that Tina Brown killed Newsweek's brand and you end up with the media rightfully pointing out that this is a dubious decision made by an "obscure" media company. Ouch.
Newsweek should have died a long time ago. And it should have pulled a dozen other titles down with it.