Technology Writer TALI ARBEL AP
Ozy closes less than a week after a New York Times column raised questions about the media organization’s claims from millions of viewers and readers, while highlighting a potential case of securities fraud.
The story sparked canceled shows, an internal investigation, investor concern and high level departures in the business.
On Thursday, Marc Lasry, the hedge fund billionaire and Milwaukee Bucks co-owner who was named Ozy’s chairman in September, resigned, citing Ozy’s need for someone experienced in crisis management and investigations. He remained an investor.
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An emailed statement Friday from Ozy Media’s board of directors called it a company with many “world-class journalists and seasoned professionals to whom we owe immense gratitude.” He said it was “with the heaviest of hearts that we have to announce today that we are closing the doors of Ozy”.
The board statement did not give a reason for the Mountain View, Calif.-based company’s closure. Ozy did not respond to questions about why it was closing now or how many employees it had.
Ozy CEO, former cable news commentator and host Carlos Watson, started Ozy in 2013. He has published articles on his website, created podcasts, newsletters and shows, and hosted the OzyFest festival. . Its website remained online Friday afternoon.
The Times article said Ozy COO and co-founder Samir Rao impersonated a YouTube executive during a call with Goldman Sachs as he tried to raise funds from the investment bank. He also addressed the industry’s longstanding questions of whether Ozy was inflating its audience size.
In a tweet, Watson claimed 25 million newsletter subscribers — the New York Times, with a much larger brand presence, claims to have 15 million newsletter readers — and more than 30 million views on YouTube. The Times said fewer than 500,000 people visited Ozy’s website in June and July, according to Comscore data.
A high-profile employee, former BBC presenter Katty Kay, quit earlier in the week, and an early investor, a venture capital firm, dumped her Ozy shares. The board reportedly hired a law firm to review Ozy’s business activities.
Cable network A&E released a mental health special hosted by Watson that was scheduled for Monday night, and Watson backed out of hosting an Emmys award-winning documentary show on Wednesday night.
The Crunchbase website, which tracks corporate fundraising, said Ozy had raised more than $70 million from investors by the end of 2019.
