Embattled media startup Ozy Media threw in the towel on Friday afternoon, announcing that it would shut down. This comes less than a week after the New York Times first reported on securities fraud allegations, which was followed by a series of stories that shed a negative light on the company’s business and management practices.
Why it matters: Ozy told Axios earlier this year that it had 75 full-time employees, all of whom now seem to be out of a job.
Ozy’s board of directors provided Axios with the following statement:
There are still many unanswered questions, including exactly who is on Ozy’s board of directors. As Axios reported earlier today, early investor Axel Springer says it gave up its board seat and voting rights in 2019, but Ozy listed an Axel rep as a director just three months ago in a filing with Florida regulators.
Former chairman Marc Lasry left the board yesterday, while co-founder Samir Rao was asked to step down pending an outside law firm’s investigation into his actions. Rao also has deleted his social media accounts in the past few days.It’s unclear what happens to Ozy’s assets, including a Series D funding round that CEO Carlos Watson told employees was raised earlier this year. Axios has asked the company about it, but has not yet received a reply.
Emerson Collective, an early Ozy investor whose founder Laurene Powell Jobs once sat on the Ozy board, declined to comment on the shutdown.
What they’re saying: Axios has spoken with many current and former employees over the past week. Most of them insist that the company had a legitimate business with real revenue, but weren’t shocked by the securities fraud allegations given some of Ozy’s questionable business practices.
Go deeper: The Wizard of Ozy