9 months ago
The Messenger is shutting down less than a year after the fledgling media company opened its doors with ambitions of building a leading news brand.
In a statement to staff Wednesday afternoon, founder Jimmy Finkelstein wrote that the company would close, “effective immediately,” due to insurmountable financial difficulties.
“Over the past few weeks, literally until earlier today, we exhausted every option available and have endeavored to raise sufficient capital to reach profitability," Finkelstein wrote. "Unfortunately, we have been unable to do so, which is why we haven’t shared the news with you until now. This is truly the last thing I wanted, and I am deeply sorry.”
Staff at The Messenger reported that their Slack shut down mid-afternoon, before any formal communication had been issued from company leadership. Many took to social media to say that they found out they were losing their jobs only when The New York Times first reported the plans this afternoon.
Finkelstein, the former owner of The Hill, launched The Messenger in May with $50 million in funds and an ambitious plan for growth. He hired some big names from legacy outlets and talked of growing one of the largest newsrooms in the nation.
The company’s closure comes after months of financial woes — in a December meeting, board members considered shutting the startup down after projections showed it would run out of money by the end of January.
The Messenger’s demise is the most recent in a slew of blows to the media industry. Just last week, the Los Angeles Times announced layoffs for 20 percent of its staff, TIME Magazine said it would cut 15 percent of its employees and Business Insider announced an 8 percent reduction.
Finkelstein cited the “economic headwinds” hitting many newsrooms, but said that The Messenger faced further difficulties as it attempted to make its mark as a startup in a flailing media industry.
“The industry has faced extraordinary challenges this past year. The economic headwinds have left many media companies fighting for survival. Unfortunately, as a new company, we encountered even more significant challenges than others and could not survive those headwinds.”
English (US)