Monday 04 October 2021 23:28
In a quick change of direction, digital media startup Ozy said it was “open for business” again, just days after it closed.
“This is our Lazarus moment,” founder Carlos Watson told US broadcaster NBC, as he announced that Ozy, who collapsed just days ago after his co-founder was exposed for deceiving Goldman Sachs in an attempt to close a $40 million deal, was revived.
Watson described the scandal-hit past week as “traumatic” and “heartbreaking”, after telling The New York Times last week that his co-founder and chief operating officer Samir Rao, the culprit in the spoofing identity, had suffered a nervous breakdown which caused the incident.
But in a change of heart, Watson said he was inspired to continue with the company after conversations with advertisers and investors over the weekend.
“I think Ozy is part of that moment,” he said. “I think what we’re doing… has its place.
Last week’s scandal prompted former BBC journalist Katty Kay to quit and call the allegations ‘serious and disturbing’. Hedge fund manager Marc Lasry also stepped down as chairman, after just three weeks at the helm, although he remains an investor in the media startup.
Watson launched Ozy in 2013, aiming to take on Vice and Buzzfeed with coverage that would disrupt the journalism industry.
