Founder Jimmy Finkelstein sent an email to stunned employees announcing the immediate shutdown, with some 300 journalists and other workers being let go, according to the The New York Times, which first reported the news. Planned cuts also have sparked walkouts by employees at other venues, including the New York Daily News and Forbes magazine. The Messenger was launched last May and spent heavily — some would say excessively, given the current media climate — in hopes of becoming a media heavyweight. It never turned a profit, and it burned through its cash as its ad revenues slumped. Critics said Finkelstein was relying on an outdated business model that relied on social media distribution and searches to attract eyeballs.

Source: Forbes February 02, 2024 05:13 UTC