[[{“value”:”The Messenger, a digital news startup with$ 50 million in funding, shut down after eight months.
According to The Associated Press, founder Jimmy Finkelstein informed employees via email about the shutdown, which resulted in the layoff of about 300 workers.
The name and a basic email address are then displayed on the website after all of its content was removed.
The Messenger’s abrupt closure makes it the most recent media outlet to experience large layoffs.
The Messenger, an virtual news source, was shut down less than a year ago https://t.co/m3CnT4mzCx
February 1, 2024, The Associated Press ( @AP )
Associated Press report:
In his email, Finkelstein explained that he had n’t informed the staff of the news earlier because, “literally until earlier today, I had been trying desperately to raise enough funds to become profitable.”
Finkelstein wrote,” We exhausted every option available,” expressing his “personal devastation.”
On Wednesday night, the Messenger website just had its name and an email address.
In his email, Finkelstein wrote that “economic headwinds have left some media companies fighting for survival.”
The Los Angeles Times, which reduced its newsroom staff by 20 % last week, as well as Sports Illustrated and Business Insider, all laid off large-scale employees as a result of The Messenger’s demise. Employees at another venues, such as the New York Daily News and Forbes magazine, have even protested planned layoffs.
The Messenger was introduced in May and spent a lot of money—some might even say unnecessarily, given the state of the media at the time—in an effort to establish themselves as media heavyweights.
At least one journalist claimed to have learned of his termination from other news websites, according to Only the News.
At least one journalist with the outlet confirmed his layoff on Wednesday, indicating he learned of his termination through various news sites: https ://t.co/tua6pQmTs5 Getting The Message | News Start- Up The Messenger Shuts Down
February 1, 2024, Just the News ( @JustTheNews )
” I recently lost my job.” One might anticipate hearing this news directly from their employer, but @TheMessenger employees learned about it via @nytimes and @semafor- there is no severance. Healthcare will stop. James LaPorta wrote,” I have to clean out my desk from the DC office.
I recently lost my job. Otherwise of receiving this news directly from their employer, @TheMessenger employees received it via @nytimes and @semafor- there is no severance. Healthcare will stop. I need to leave the DC office and tidy up my desk.
— January 31, 2024, James LaPorta ( @JimLaPort )
According to Axios, The Messenger does not provide any employee severance.
Finkelstein wrote in the staff memo,” However, as a new company, we encountered even more important challenges than others and could not survive those headwinds.”
According to Axios:
Two years after selling The Hill, a Beltway-based print and electronic publication co-founded by Finkelstein’s father in 1994, to Nexstar for$ 130 million, The Messenger was established by him in 2023.
Finkelstein had recently co-founded a media holding company that bought Nielsen’s publications like Adweek, Billboard, and The Hollywood Reporter in 2009.
Over the course of a few short months, The Messenger hired 300 people and paid them above market rate.
The Messenger was founded on the imperfect idea that a sizable, uninteresting news audience has worth. It no longer does.
The majority of news companies are now forced to rely on search traffic, which takes time to grow, or paying visitors as a result of social media giants ‘ desire to exit the news industry.
A premium has been placed on monetizing smaller, more devoted audiences with first-party data due to the deprecation of third party tracking cookies.
In addition to advertising, subscriptions have become a crucial revenue stream due to an overall slowdown in the advertising market.
The Messenger used third-party data to sell mostly integrated online ads at scale. It likewise offered event sponsorships.”}]] [[{“value”:”
The Messenger, an online news startup funded with $50 million, ceased operation after eight months.
According to the Associated Press, founder Jimmy Finkelstein had sent an email to his employees about the shutdown. This led to approximately 300 workers being laid-off.
The website has removed all of its content, and now only displays the name along with a generic email address.
The Messenger is the latest media outlet to be affected by mass layoffs.
Online news site The Messenger shuts down after less than a year https://t.co/m3CnT4mzCx
The Associated Press (@AP), February 1, 2024
The Associated Press:
Finkelstein wrote in his email that he hadn’t told employees the news earlier because he was trying desperately to raise funds to become profitable, “literally up until earlier today.”
Finkelstein wrote that he had “personally been devastated” by the situation.
The Messenger website Wednesday night only displayed its name and email address.
Finkelstein wrote in his email that many media companies are struggling to survive because of economic headwinds.
The Messenger’s collapse comes on the heels of massive layoffs at once powerful and influential outlets such as Sports Illustrated, Business Insider, and the Los Angeles Times. The latter cut its newsroom by 20% last weekend. Employees at the New York Daily News, Forbes magazine and other outlets have also walked out of their offices because of planned cuts.
The Messenger was launched in May last year and spent heavily – some would say excessively – given the current media environment, with hopes of becoming an industry heavyweight.
According to Just the News at least one journalist claimed he found out about his dismissal through other news websites.
Getting The Message | News Start-Up The Messenger Shuts Down | At least one journalist with the outlet confirmed his layoff on Wednesday, indicating he learned of his termination through other news sites… https://t.co/tua6pQmTs5
Just the News (@JustTheNews), February 1, 2024
“I was just laid off.” The @TheMessenger staff did not receive a severance package. Instead, they learned about it from @nytimes.com and @semafor. Healthcare will cease. James LaPorta wrote: “I have to clean out my desk in the DC office.”
I was just laid off. The @TheMessenger staff did not receive a severance package. Instead, they learned about it from @nytimes.com and @semafor. Healthcare will cease. I need to clean my desk in the DC office.
James LaPorta, January 31, 2024
Axios reported that The Messenger does not offer any severance pay to its employees.
Finkelstein wrote in a memo to staff that “Unfortunately, being a new company we faced even more significant challenges and could not overcome these headwinds”.
Axios reports:
Finkelstein founded The Messenger in 2023. This was two years after selling The Hill, a Beltway print and digital publication that Finkelstein’s dad co-founded in 1994, to Nexstar for $130 millions.
Finkelstein co-founded in 2009 a media holding company that bought outlets such as Adweek, Billboard, and The Hollywood Reporter (formerly Nielsen) from Nielsen.
The Messenger hired 300 workers in a short period of time and paid them a wage above the market rate.
The Messenger was built upon the flawed assumption that a large, generic news audience had value. It doesn’t.
Social media giants, eager to get out from the news business, no longer distribute free traffic to news sites. This forces most news companies to depend on search traffic which takes time to build, or buy visitors.
The deprecation and eventual removal of third-party cookies has shifted the focus to monetizing smaller, but more loyal audiences using first-party data.
Subscriptions have become a vital revenue stream, in addition to advertising, due to a general slowdown in the ad industry.
The Messenger sold digital ads mostly at scale, using data from third parties. It also sold sponsorships for events.
“}]]
