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The millennial news website, Mic, has laid off most of its staff and is preparing to sell its fire to a competitor at a great price, raising doubts about the viability of a number of young online media companies that are struggling to generate profits.
Mic, founded in 2011, was one of many viral websites that exploded when Facebook began prioritizing news content early in the decade, flooding news feeds and news. reaching hundreds of millions of viewers around the world with quick explanations on complex issues. and original news content.
The New York-based site, with more than 100 employees, focuses on social justice issues and benefits from Facebook's decision to prioritize video content. However, Mic's executives partly blamed the decision on the site's Facebook Watch series, which sees the social network paying for the company's videos directly.
Rossvan Ross Katz
(@Evanrosskatz)So yes, that's right, after almost three years here at @micWith other friends and talented colleagues, I was released. Gross! Thank you to all those who extend their hand with kindness. Not rude!
Forward and upward.
Billions of dollars in venture capital money went to Mic and similar viral sites like BuzzFeed, Vox and Mashable earlier this decade, as publishers tried to take advantage of rapid growth in demand viral information and that investors they thought would become the dominant news website of the future.
However, many sites of this type have struggled to take advantage of online advertising despite the large sums spent. Instead, traffic growth is halted by Facebook downgrading its news and professional video content and by publishers, who have turned to other sources of revenue, such as Vice's decision to make TV shows for the traditional HBO broadcaster.
Last year, Mic received additional funding of $ 21 million (£ 16 million), under a contract valuing the company at over $ 100 million, allowing it to continue to operate from its lavish offices located in One World Trade Center.
Eighteen months later, the company was being sold to rival Bustle for less than $ 10 million, according to The Information. A spokesman for Mic declined to comment on the number or number of staff departures, which had been reported for the first time by Recode.
Emily C. Singer
(@CahnEmily)Well, the news has arrived: today is my last day @Mic. I'm so proud of what we've accomplished here over the past 2.5 years. If someone is looking for a devious political junkie and a journalist, my personal email address is [email protected]. And also hire my incredible colleagues.
Several major US-based new media groups have quietly discussed the possibility of merging their activities to remain viable. BuzzFeed founder Jonah Peretti has publicly announced the idea of a mega-merger with competitors to compete with Google. and Facebook for online advertising revenue.
However, there were few signs at the moment that firm discussions were underway and doubts about whether a merged company would provide an attractive prospect for investors eager to withdraw their money from corporations. Mashable, which experienced a strong expansion early in the decade, was sold for less than $ 50 million.
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