The Messenger Struggles to Secure Funding, Could Close by End of Week —Report
Struggling digital news startup The Messenger may not survive until the end of the week, according to a report from The New York Post which cited a well-placed source familiar with the matter.
According to the report, employees expect to find out in the next 48 hours if founder and CEO Jimmy Finkelstein will be able to keep the media company afloat. He is reportedly working on “multiple deals,” and that these deals need to come through “ASAP” for the company not to close by the end of this week.
“Hopes are not high in the newsroom,” an insider told the New York Post. “It’s f-ing bananas.”
The Messenger has not verified this information. Earlier this month, a report from Semafor said that the news startup “weighed shutting the publication down at a meeting on Friday, after learning that the company is on track to run out of cash at the end of January,” and said that the board also discussed the possibility of shutting down, and that Finkelstein appeared open to selling the organization.
The Messenger denied these claims and said that they have “already secured investment as part of our second raise, and so the notion of us discussing closure is beyond absurd,” but did not give details on the second fundraising.
The news startup was also reported to be in talks with a group of conservative investors who are looking to acquire a majority stake — meaning Finkelstein would need to relinquish control of the company that was touted to be “an alternative to a national news media that he says has come under the sway of partisan influences.”
The deal, said to be $30 million for a 51% stake in the independent media publication, was proposed by a consortium made up of right-wing supporters including financier and Tucker Carlson backer Omeed Malik, Republican operative Garrett Ventry, digital media agency founder Ryan Coyne, and former Parler CEO George Farmer.
Information for this story was found via The New York Post, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
