Skip to main content
We may receive compensation from affiliate partners for some links on this site. Read our full Disclosure here.

$50 Million News Outlet SHUTS DOWN Without Warning


Well, I didn’t see this coming, and neither did the employees of the outlet.

Many of you are familiar with the news outlet “The Messenger.” I read a couple of pieces by them and have used them in my reporting, but was never a dedicated reader of the outlet.

The online news operation was pitched to audiences and investors as a completely unbiased news source—something essentially non-existent today.

Sources say that the outlet attracted $50 million in investment funds and promised lucrative returns to those who invested in the news startup, but those returns never materialized.

Following a turbulent first year, the outlet has chosen to shut its doors, but not in the way one would expect from a legitimate business concern.

The outlet shut down abruptly, with zero warning to either readers or their staff, and the site is completely gone as of this writing. While The Messenger was not a mainstream media outlet, this shows the dire predicament of the media at large.

The Messenger took in $50 million and had hundreds of employees. If outlets like The Messenger have a hard time keeping their doors open, how can MSM giants like CNN?

Here’s what is currently being reported about the former news outlet:

The New York Post had more on the meltdown at the online news site:

With news swirling that Finkelstein was scrambling to shore up funds in order to save the company — launched just last May with $50 million — employees either “tapped out” by calling out sick because they believed their fate was already sealed or “worked harder” in the misguided hope that last-minute scoops could show potential investors that the Messenger was worth saving.

“Top editors were assigning stories two days before the site shutdown,” said one staffer.

“It wasn’t clear that leaders had any clue what was going to happen.”

The Daily Beast featured this update: “Just a day after troubled digital news outlet The Messenger shuttered and hundreds of its journalists were unceremoniously fired, ex-staffers of the short-lived website filed a class-action lawsuit against their former employer.”

Politico reports that the defunct outlet is now facing a class-action lawsuit from its former employees:

The lawsuit alleges that The Messenger violated the WARN Act — a labor law that protects employees from mass layoffs or shutdowns — by failing to give employees at least 60 days notice of their impending terminations, and denying them benefits and wages they’re owed.



 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Leave a comment
Thanks for sharing!