Do you want to know the details surrounding the Ozy media scandal and reasons why Ozy media shut down and later resumed operations? Read this article to find out more about the Ozy media scandal.
What is Ozy Media
OZY media is an American media and entertainment company launched in September 2013 by Carlos Watson and Samir Rao. It has its headquaters in Mountain views, California and an office in New York.
The New York Times had reported a series of scandals at Ozy involving violations of federal law, executive misbehavior, and grossly exaggerated user engagement metrics. Other media outlets quickly picked up the story and verified the Times reporting.
Ozy media scandal
The scandal was triggered by a Times article that described how Ozy’s operating chief, Samir Rao, impersonated a YouTube executive on a conference call with Goldman Sachs, which was considering investing $40 million in Ozy. It was also alledged that Ozy had also inflated its monthly visitors so as to lure advertisers. This scandal led to many people quitting the company this includes former BBC anchor, Katty Kay and and investor Chairman Marc Lasry.
In In October 2021, Ozy’s board of directors announced that the company would cease operations, and Ozy laid off the majority of its staff. However On October 4, Watson announced that the company would remain in operation with a significantly reduced board of directors. Ron Conway, an early investor, objected to Watson’s plan. Conway later surrendered his shares and hired a law firm to negotiate severance packages for many former employees.
In November, the Department of Justice and Securities and Exchange Commision (SEC) opened investigations into the company.