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G/O Media Shutters Jezebel After Abandoning Sale Efforts

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10 months ago

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G/O Media, the holding company led by dipshit media parasite Jim Spanfeller, abruptly suspended the operation of Jezebel and laid off the site’s entire editorial team Thursday morning. The move comes two days after Spanfeller dismissed G/O Media editorial director Merrill Brown, and amid a round of layoffs expected to eliminate 23 jobs across the company.

Jezebel, the popular feminist publication that launched in 2007, survived the collapse of Gawker Media and the sale of its network of sites to Univision in 2016, and then the ominous transition of ownership to private-equity firm Great Hill Partners in 2019. Under Spanfeller’s oversight, the site had seen its staff whittled down to the bare minimum. At the time of its shuttering, Jezebel’s masthead (which evidently hadn’t been fully updated in the past year) included one full-time editor, Lauren Tousignant, who in addition to regular editing duties was standing in as interim editor-in-chief, while Brown and deputy editorial director Lea Goldman worked through a protracted search for a permanent replacement.

Laura Bassett, the former EIC who resigned in August, said at the time that her hand was forced by leadership’s refusal “to treat my staff with basic human decency.” Among Bassett’s concerns was the company’s top-down decision to start using AI-written content, which the network’s union described as “computer-generated garbage” that undermined the work of staff and the publications’ editorial missions.

Communication under the Spanfeller regime has always been poor. (The founders of Defector, who worked for him before resigning en masse in 2019, can confirm this firsthand.) As Jezebel was allowed to stagnate, with an overworked staff and an interim EIC stretched to the limit, rumors swirled about the future of the publication. Two Jezebel staffers who spoke with Defector on Thursday said that staff demanded and received a meeting with Brown and Goldman several weeks after Bassett’s departure, and asked “point-blank” whether G/O Media was planning to sell Jezebel. The staffers, who asked for anonymity due to uncertainty about severance in the aftermath of the site’s shutdown, said Brown and Goldman were evasive and non-committal, offering vague statements about working to put Jezebel on firm footing, which at least one staffer took to be a no. This seemed to contradict a rumor that had circulated among G/O Media editorial staff: that Brown, acting on G/O Media’s behalf, had earnestly offered the site to Bassett at the time of her resignation. In any case, shortly after Brown and Goldman seemed to downplay or even deny any effort by the company to offload Jezebel, Axios reported the opposite: G/O Media was searching for a buyer for the site, and Goldman was in charge of leading the effort. According to the two Jezebel staffers, this was the first official confirmation that they received about the plan.

As the effort to sell Jezebel became common knowledge, the staffers who spoke with Defector began to notice a marked decrease in attention from G/O Media leadership. Where previously oversight had been hands-on to the point of micro-management, the sources said that starting in September it suddenly seemed like no one really cared about what went on at the site, either on the page or behind the scenes. Concerns about traffic and output suddenly melted away, and staffers began to suspect that this meant G/O Media had given up on running the site. Editorial leadership appeared to make no real effort to find a new crew of editors or diversify the staff, and the current staffers could only gather “scraps of information” about what might be happening with the sale. The failure of editorial leadership to staff up one of the network’s flagship publications was no longer a surprise, according to these staffers, who had grown accustomed to working in a bare-bones operation.

In the absence of better information, staff began to tie the two overlapping conditions together: Goldman and Brown were dragging their feet on hiring because they were either occupied with the sale or because they assumed the site would be easier to offload with lower payroll commitments. The reverse also seemed possible: that the reputation of G/O Media was so spoiled that even in a brutal media job market, people “would rather starve” than work for it.

Staffers were optimistic that a sale would eventually be completed, even in the absence of any concrete updates. One Jezebel staffer told Defector that they had been assured in no uncertain terms that a failure to sell Jezebel would not lead to layoffs. There was still no indication, as Jezebel went into its final hours of operation this week, that the site was nearing its end. On Tuesday night, staff worked off-hours to cover the 2023 elections; on Wednesday night, the site was again staffed off-hours to provide updates on the GOP primary debate in Miami. On Thursday morning, editorial leadership sent notice of a meeting scheduled for 10 a.m. At the meeting, the handful of Jezebel staffers were given three pieces of news: The effort to sell the site had fallen through and been abandoned as of Tuesday; Jezebel would be shuttered, effective immediately; and they would all be out of a job. The Jezebel staffers told Defector that within minutes of that meeting, they were removed from company Slack channels and had their email access terminated.

Laid-off Jezebel staffers continue to harbor doubts about the seriousness of Goldman’s effort to sell the beloved website. The firewall between editorial and sales had long been permeable enough at G/O Media for editorial staffers to have internalized that Jezebel could be a tough sell for advertisers, a business-side concern that Spanfeller reinforced in a memo distributed to staff Thursday, announcing Jezebel’s shuttering. Spanfeller said that G/O Media’s “business model and the audiences we serve across our network did not align with Jezebel’s,” which one staffer understood to be a more-or-less true statement of the gap between the enthusiast content mills Spanfeller prefers and the outspokenly left-leaning work that forms Jezebel’s editorial outlook, which has historically made it a tougher fit with advertisers.

The suddenness of the abandonment of the sale effort and the abrupt shuttering seem to confirm what one Jezebel staffer described to Defector as a suspicion, starting with Bassett’s departure back in August and growing stronger in the months to follow, that G/O Media had already decided to nuke the site. The search for a buyer, by this interpretation, was less about capitalizing on the reputation of a legacy publication and more about seeing if there was any last-minute value to extract from a property that management had come to view as garbage.

The closure of Jezebel rids G/O Media of the last site with a direct mandate to report and offer commentary on American politics, and shutters what a G/O Media pitch document described as “an outlier in G/O Media’s male-skewing portfolio of digital properties” according to Axios. Given the ongoing nationwide struggle to resist harsh state-level abortion bans and a 2024 presidential election cycle that is about to kick up into high gear, it’s an astonishing decision. There is no word yet on whether Spanfeller’s new robo-writers will have the latitude to acknowledge the shifting state of American democracy, as they scrape the work of all the journalists the company is chasing out into the street.

 

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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3 weeks ago

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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3 weeks ago

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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3 weeks ago

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August 20, 2024

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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