The reason this news pioneer is closingBuzzFeed’s decision to shut its news division — an innovator in digital journalism that published both prizewinning investigations and listicles designed to get clicks — drew many bittersweet tributes online. But its closure is the latest reminder that digital media start-ups, which deep-pocketed investors once valued at astronomical sums, are facing headwinds. With even tech giants struggling to navigate hurdles like a declining advertising market, smaller companies are facing potentially existential crises. BuzzFeed and its peers have also suffered from the same drop-off in online ads that is forcing sharp job cuts at Alphabet, Meta and others. BuzzFeed used one to list on the Nasdaq in late 2021 — and ended up raising just $16 million, far short of the $250 million it could have collected.

Source: New York Times April 21, 2023 18:53 UTC