The Massenger, a digital news startup founded by media executive Jimmy Finkelstein, is shutting down in less than a year, marking a significant setback in the internet media landscape, Axios reported, citing insider information.
The announcement follows recent reports hinting at staff layoffs within the startup, which employed approximately 300 people before its closure.
Having launched in May with an initial investment of $50 million, The Messenger gained attention for its focus on politics, general news, and sports coverage. Despite efforts by CEO and founder Jimmy Finkelstein to secure additional funding to sustain operations, including discussions to extend the business’s runway, no viable deal materialized, Axios revealed.
The startup achieved a notable milestone in September with the acquisition of prominent sports personalities such as Seth Davis, Jeff Goodman, Ryan Nanni, Arash Markazi, Mike Tanier, Neil Paine, Kaelen Jones, and Christian Red, among others.
Despite these efforts, Finkelstein’s last-minute fundraising endeavors failed to garner sufficient support, leaving The Messenger vulnerable amid challenging industry conditions. In a staff memo obtained by Axios, the inability to secure necessary funds was attributed to broader media sector challenges.
“Unfortunately, as a new company, we encountered even more significant challenges than others and could not survive those headwinds.”
Meanwhile, the president of the embattled startup, Richard Beckman, has announced his departure from the company on Tuesday as it initiates another round of layoffs.
Beckman, a former Conde Nast executive known for his assertive business approach and nicknamed “Mad Dog,” played a key role in generating revenue for the website, which was launched in May. Before the startup’s debut, Beckman had confidently predicted in a New York Times profile that the site would achieve over $100 million in revenue in 2024, attract 100 million monthly readers, and employ hundreds of reporters nationwide.
Once brimming with the latest stories and captivating articles, The Messenger website now displays a blank page adorned only with the company logo and contact email address.
Axios
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