Ozy closes less than a week after a New York Times column raised questions about the media company’s claims that it has millions of viewers and readers, while pointing to a potential case of securities fraud.
The story sparked canceled shows, an internal investigation, investor concern and high-profile departures from the company. Ozy, launched in 2013, had vaunted his ability to “be one step ahead” and “never [telling] a story that another national or international publication has already covered.”
A statement emailed Friday by 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”.
A Silicon Valley who’s who and business figures have served on Ozy’s board of directors or have invested in the company, including Laurene Powell Jobs, billionaire and widow of Apple co-founder Steve Jobs, according to the Times.
The board statement did not give the reason for the Mountain View, Calif.-based company’s closure. Ozy did not immediately return a request for comment from CBS MoneyWatch.
The Times article said Ozy co-founder and COO Samir Rao allegedly posed as a YouTube executive during a call with Goldman Sachs bankers as he attempted to raise funds from the investment bank. The report also addressed long-standing industry questions about whether Ozy was inflating its audience size.
On Thursday, Marc Lasry, the hedge fund billionaire and co-owner of the Milwaukee Bucks who was named chairman of Ozy in September, resigned. 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.
Ozy has posted stories on its website, created podcasts, newsletters and shows, and hosted the OzyFest festival. Its website remained online Friday afternoon.
