In a surprising turn of events, The Messenger founder Jimmy Finkelstein recently engaged in a last-minute discussion with Los Angeles Times owner Patrick Soon-Shiong regarding the potential acquisition of The Messenger. Sources familiar with the situation revealed that Soon-Shiong reached out to Finkelstein on Tuesday, leading to an offer that was later described as a “lowball” figure for the struggling publication. However, by Wednesday, the offer had fallen through, leaving The Messenger in a dire situation.
This development comes just days after the Los Angeles Times announced the layoff of 115 newsroom employees, further exacerbating the already challenging landscape for the media industry. The timing of the discussion between Finkelstein and Soon-Shiong suggests that Finkelstein was desperately seeking a lifeline to save his money-losing website.
The Messenger’s fate was sealed shortly after the failed negotiations, as the publication was abruptly shuttered, resulting in the termination of 300 staff members. Finkelstein expressed his personal devastation in an email to the affected employees, stating, “I am deeply sorry.” He further explained that every possible avenue had been explored to secure sufficient capital and achieve profitability, but unfortunately, those efforts proved unsuccessful.
The talks between Finkelstein and Soon-Shiong were described as a last-ditch effort by Finkelstein to salvage The Messenger. However, it is important to note that these discussions were only preliminary, and the offer was swiftly withdrawn within hours of being made. The economic challenges faced by The Messenger were echoed by Chris Argentieri, the president and chief operating officer of the Los Angeles Times, who acknowledged the need for immediate action to improve their cash position despite the owner’s willingness to continue investing.
Interestingly, this recent series of events follows the removal of Kevin Merida from his role as editor of the Los Angeles Times last month. Merida’s departure was reportedly due to ongoing conflicts with Soon-Shiong and his daughter, Nika. The leadership changes and financial struggles within the organization have undoubtedly contributed to the current state of affairs.
Both Soon-Shiong and a spokesperson for the Los Angeles Times declined to comment on the matter, leaving many questions unanswered. Similarly, Finkelstein and a representative for The Messenger did not respond to multiple requests for comment, leaving the public with limited insight into the details of the failed acquisition attempt.
The closure of The Messenger serves as a stark reminder of the challenges faced by digital media platforms in an increasingly competitive and financially demanding industry. As the media landscape continues to evolve, it is crucial for organizations to adapt and find sustainable models that can withstand economic pressures. The fate of The Messenger serves as a cautionary tale for media outlets striving to navigate these turbulent times and underscores the importance of strategic decision-making and financial stability in an ever-changing digital world.