The Messenger, a news startup owned by billionaire Jimmy Finklestein, has reportedly run out of cash just five months after its launch.
According to The New York Post, despite hiring a team of experienced editors and reporters, the online site has struggled to attract visitors and establish itself financially.
The company’s president, Richard Beckman, has privately informed journalists that the site is out of money, causing anxiety among the staff. As a result, employees are pushing to unionize the newsroom and requesting a town hall meeting with management to address their concerns.
Aside from financial worries, employees are concerned about the outlet’s recent partnership with an artificial intelligence firm and secrecy about the site’s traffic.
A company spokesperson did not comment specifically on The Daily Beast’s story but said The Messenger is still growing its team, and its traffic is “through the roof”. However, the spokesperson did not provide traffic figures.
“The Messenger is doing extraordinarily well. We are breaking important stories, launching new verticals, and adding people to the team,” the representative told The Post.
“We are building one of the next great media companies in the US, and we couldn’t be more excited about the future of the Company.”
According to Nieman Lab’s analysis of Similarweb’s external traffic, The Messenger ranks 195th among US news sites, similar to local Texas news stations. However, there are concerns among employees regarding the leadership and strategy of the media company.
Editor-in-chief Dan Wakeford is not frequently present in the newsroom, and the involvement of Finklestein, a former part-owner of The Hollywood Reporter and The Hill, who provided $50 million to fund the venture, is causing unease among the staff.
