Ozy (media company)
Type | Private |
---|---|
Industry | |
Founded | September 2013 |
Founders |
|
Headquarters | , U.S. |
Website | www |
Ozy (styled as OZY) is an American media and entertainment company launched in September 2013 by Carlos Watson and Samir Rao.[1][2][3][4] It is headquartered in Mountain View, California, with an additional office in New York City.
Ozy produces podcasts,[5] television series,[6] and events.[7] Ozy received an Emmy for a 2019 television show that aired on the Oprah Winfrey Network.[8] and an Imagen award for Best Informational Program.[9]
Following a scandal concerning executive misbehavior and exaggerated user engagement metrics reported by The New York Times in late September 2021, Ozy's board of directors announced on October 1, 2021, that it would cease operations. The company subsequently laid off a majority of its staff.[10] On October 4, CEO Watson announced that the company would remain in operation with a significantly reduced board of directors, despite the objections of an early investor.[11][12][13][14][15]
In November, 2021 it was reported that the Justice Department and the Securities and Exchange Commission had opened investigations into the company.[16]
History[]
Financing[]
Ozy was launched as a digital magazine and daily newsletter in September 2013. The company raised a $5.3 million seed round of funding in December 2013 backed by Laurene Powell Jobs, founder of Emerson Collective.[17] Additional early investors included Louise Rogers and Ron Conway.[18] Powell Jobs became a board member.[19]
In October 2014, Ozy announced that German media giant Axel Springer had invested $20 million in the company.[20] In January 2017, Ozy announced a $10 million Series B round of fundraising, led by Michael Moe's GSV Capital.[21] In November 2019 Ozy announced a Series C round of $35 million, led by businessman Marc Lasry.[22]
In January 2021, Axios announced that the company had reached profitability for the first time, having brought in $50 million in revenue in 2020.[23] The company also said that it had received acquisition offers from unnamed media companies.[23] In March 2021, Adweek announced that Ozy and advertising agency Dentsu had agreed to a multi-year partnership as part of Dentsu's investment in "meaningful media" focused on millennial and Gen Z consumers.[24]
Ozy also received funding from the Ford Foundation.[25]
Partnerships[]
In 2014, the company began a content partnership with the National Geographic Society, which publishes National Geographic.[26] The company also partnered with the BBC.[27] It also partnered with Lifetime, with The History Channel and, in additional projects, with that channel's parent company, A&E Networks.[28]
In print media, Ozy has partnered since 2015 with The New York Times and Wired.[29]
Allegations of fraud[]
On September 26, 2021, the New York Times reported that that Samir Rao, COO and a co-founder of the company, had impersonated a YouTube executive in a formal meeting with Goldman Sachs. The meeting was an attempt to secure a $40 million investment.[19] After bringing their suspicions to YouTube, YouTube confirmed that no executive participated in a call with Goldman Sachs. As a result, Goldman Sachs did not go forward with the investment. Google, the parent company of YouTube, then referred the matter to Federal law enforcement to investigate the apparent fraud perpetrated by Ozy.[19] The New York Times report also discussed inflated traffic numbers, which BuzzFeed had reported on in 2017.[30][19]
Following media coverage of Rao's impersonation, Ozy's board of directors asked him to take a leave of absence and announced that they had engaged the law firm Paul, Weiss, Rifkind, Wharton & Garrison to undertake a review of the company's business practices.[31] Upon the company's restart a few days later, Watson said he wasn't sure the review would happen.[32] Elsewhere it was reported that the board members who had requested the review were no longer with the company.[15]
A number of prominent people and organizations distanced themselves from Ozy following the publication of the Times article. Television journalist Katty Kay, who had joined just three months prior, resigned from Ozy Media; SV Angel announced it would give up the shares it had acquired in Ozy in 2012; and A&E canceled the broadcast of a documentary it had produced with Ozy.[33][34] The company's chairman Marc Lasry resigned after three weeks on the job and released a statement, "I believe that going forward Ozy requires experience in areas like crisis management and investigations, where I do not have particular expertise."[35]
Shortly after the Times article was published, Sharon Osbourne responded to a request by CNBC to verify a statement Ozy CEO Watson had made in a 2019 interview with them that Sharon and Ozzy Osbourne, after having sued Ozy over infringement on their Ozzfest brand, "decided to be friends and now they're investors in Ozy." Osbourne denied that she or her husband had been investors, saying, "This guy is the biggest shyster I have ever seen in my life", adding that during their legal battle she had declined shares in Ozy that Watson offered her.[36] On October 4, 2021, Watson said that he had described the Osbournes as investors because they had been granted shares of stock in Ozy as part of a legal settlement.[13]
Aftermath[]
On October 1, 2021, Watson, who had just been re-elected to a second three-year term as a corporate director of NPR, resigned immediately before a governance committee was planning to meet to determine his future.[37] The same day, Ozy edited its website to remove Samir Rao's staff page.[38] The board announced the company's closure, saying, "It is therefore with the heaviest of hearts that we must announce today that we are closing Ozy's doors." A majority of the staff were laid off.[10][39]
On October 4, 2021, Watson said that Ozy would remain active.[13] In an interview on NBC's Today, he announced the company is open for business, saying, "This is our Lazarus moment, if you will, our Tylenol moment."[13] The next day, LifeLine Legacy Holdings, a fund management company that invested more than $2 million, filed a lawsuit claiming Ozy “engaged in fraudulent, deceptive and illegal conduct.”[40]
Axios noted the company would continue to face multiple issues in its attempted recovery, including investigations by the U.S. federal government and by outside law firms. They also noted that it remained unclear how much cash Ozy has on hand, and that the board of directors now includes only Watson and venture capitalist Michael Moe.[41]
Ron Conway, an early investor, was highly critical of Watson's decision to reopen. Conway said that he did not think the company should spend any money on a relaunch and that instead Ozy should have used its remaining cash to pay two weeks' severance to about 75 former Ozy employees.[15]
In November, 2021 it was reported that the Justice Department and the U.S. Securities and Exchange Commission (SEC) had opened investigations into the company. Watson confirmed that he had heard from the SEC.[16]
Content[]
Magazine[]
Ozy's digital magazine focuses on profiles of rising stars and trends, often rehashing stories covered previously by other media without any original interviews or reporting.[42][18] Reporters are given budgets as small as $150 per story and are instructed not to cover topics that are covered by other mainstream media outlets, which leads to the publication of some articles that focused on issues that are of very narrow interest.[43]
In 2017, Ozy reporters visited all 50 U.S. states for a project called "States of the Nation." The year after that, Ozy produced a series called "Around the World" in which they committed to report on three stories in every country. CNN reported that both series were largely delivered as promised, although the latter grouped some smaller countries together.[44]
Television[]
In 2016, Ozy's first television series, The Contenders: 16 for '16, aired on PBS.[45] It later produced three additional series for PBS.[46][47][48][49]
The four-part show Black Women OWN the Conversation aired in August and September 2019 on the Oprah Winfrey Network. The episode "Motherhood" won the Outstanding News Discussion and Analysis award at the 41st News & Documentary Emmy Awards in 2020.[50][51] The show featured conversations with an audience of 100 black women.[52]
In January 2020, Ozy announced a partnership with A&E Networks to co-produce at least two additional television shows.[53] By September 2020, the number of titles announced under the partnership had grown to five, including two scripted shows, a dating show, and a re-editing of the company's first TV show, The Contenders, updated for the 2020 election.[28]
In July 2020, Ozy announced The Carlos Watson Show, a new daily talk show focused on long-form interviews, which would be distributed on YouTube.[54] Brad Bessey, executive producer of The Carlos Watson Show, told The New York Times in September 2021 that he had been misled to believe that the show would air in prime time on A&E when he was hired. Talent bookers provided similarly misleading statements to guests on the show. Bessey resigned after learning that the show would instead be produced by the A&E Networks company for YouTube distribution. In his farewell email to Watson and Ozy COO Samir Rao, Bessey wrote, "You are playing a dangerous game with the truth. The consequences of offering an A&E show to guests when we don't have one to offer are catastrophic for Ozy and for me."[55]
Podcasts[]
Ozy produces several podcasts, beginning with history podcast The Thread in 2017,[56] an episode of which was featured as one of the 25 best podcasts of 2017 by The Guardian.[57] The company also produces a science and technology podcast The Future of X,[58] and Ozy Confidential, an interview podcast.[59]
Ozy Fest[]
In 2016 an event dubbed "Ozy Fest" was launched, which until 2018 was held in Rumsey Playfield at Central Park in New York City.[60] The name of Ozy Fest sparked a lawsuit from Ozzy Osbourne's Ozzfest in 2017.[61] The festival featured appearances from Wyclef Jean, Issa Rae, Katie Couric, and others.[62][63][64] Laurene Powell Jobs interviewed Hillary Clinton.[65][66]
Ozy Fest 2019 was canceled, which was blamed on a heat wave.[67] It later emerged that Ozy had been grossly inflating crowd projections and was ill-prepared for the event itself, with one employee saying "It was going to be Fyre Fest."[68]
In 2021, Ozy Fest aired a two-day virtual event to raise funds for the United Negro College Fund.[69]
Ozy Genius Awards[]
Ozy has hosted an irregular scholarship program since 2015,[70] awarding 10 college-aged applicants with a $10,000 grant to pursue a "genius idea".[71] Among the 2017 class of Ozy Genius Award winners was 2021 inauguration poet Amanda Gorman.[72]
Organization[]
Ozy was founded by members of minority groups. CEO Watson said, "More than half of our company is people of color, more than half of our leadership team is female."[23] According to employees, Ozy demands very long work hours and high output. Employee turnover is high; employees have described executives as mercurial and abusive.[43][73]
Reception[]
The Daily Telegraph described OZY as "a left-wing media company".[74] Variety profiled Ozy favorably.[75] Axios described it as "one of the few digital media companies today that was founded and is run by a person of color".[76]
Ozy Fest 2018 was also criticized as a "neoliberal nightmare" by Rolling Stone,[77] a "sizzling hot festival for folks who love Coachella and neoliberalism"[78] by GQ, and "a progressive alternate reality" by The Washington Post.[79]
References[]
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- ^ Shontell, Alyson (September 16, 2013). "Former MSNBC Anchor Launches Ozy, A Fresh News Site With Money From Laurene Powell Jobs". BusinessInsider.com. Retrieved March 15, 2017.
- ^ Ariens, Chris (September 16, 2013). "The WebNewser Ticker: Watson & OZY, Baier & Bing, 'Stars' & Facebook". MediaBistro.com. Retrieved March 15, 2017.
- ^ Spangler, Todd, "Digital News Startup Ozy Media Raises $10 Million to Expand Video Team, Hire More Journalists", Variety, January 24, 2017.
- ^ "Ozy Media Redesigns Homepage, Launches Podcast". www.mediapost.com. Retrieved May 4, 2019.
- ^ "OZY Media Announces New Primetime Television Series, 'Take On America'". www.prnewswire.com (Press release). OZY Media. Retrieved May 4, 2019.
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- ^ "Nominees Announced for the 41st Annual News & Documentary Emmy® Awards – The Emmys". theemmys.tv. Retrieved August 18, 2020.
- ^ Ramos, Dino-Ray (August 11, 2019). "Imagen Awards Winners: 'Pose', 'One Day At A Time', 'Monsters and Men' Among Honorees". Deadline. Retrieved November 1, 2019.
- ^ a b Smith, Ben (October 1, 2021). "Ozy Media Will Shut Down". The New York Times. Retrieved October 1, 2021.
- ^ Spangler, Todd (October 4, 2021). "Ozy Media Is Not Shutting Down After All, CEO Carlos Watson Says". Variety. Retrieved October 4, 2021.
- ^ Seamons, Kate (October 4, 2021). "'This Is Our Lazarus Moment': OZY Reverses Closure Decision". Newser. Newser, LLC. Retrieved October 4, 2021.
After the company's board on Friday announced Ozy was immediately shuttering following bombshell reporting from Ben Smith at the New York Times, Ozy CEO Carlos Watson told the Today show on Monday that the doors were staying open. 'We're going to open for business, so we're making news today. This is our Lazarus moment, if you will, this is our Tylenol moment. Last week was traumatic, it was difficult, heartbreaking in many ways.'
- ^ a b c d "Ozy Media CEO Carlos Watson speaks out exclusively on TODAY". TODAY.com. Retrieved October 4, 2021.
- ^ Fischer, Sarah (October 4, 2021). "Carlos Watson plans to relaunch OZY, despite significant setbacks". Axios. Retrieved October 4, 2021.
- ^ a b c Smith, Ben (October 4, 2021). "After Ozy's Carlos Watson Talks of a Comeback, a Key Investor Objects". New York Times. Retrieved October 25, 2021.
- ^ a b Smith, Ben; Protess, Ben (November 10, 2021). "Ozy Media Faces Federal Investigations". The New York Times. ISSN 0362-4331. Retrieved December 3, 2021.
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- ^ a b c d Smith, Ben (September 27, 2021). "Goldman Sachs, Ozy Media and a $40 Million Conference Call Gone Wrong". The New York Times. ISSN 0362-4331. Retrieved September 27, 2021.
Laurene Powell Jobs, who had co-founded a college prep nonprofit with Mr. Watson in 1997, invested and joined the Ozy board
- ^ Yu, Roger. "Axel Springer invests $20M in startup Ozy". USA TODAY. Retrieved July 16, 2020.
- ^ Alpert, Lukas I. (January 24, 2017). "Ozy Media Raises $10 Million to Expand Video, Events". Wall Street Journal. ISSN 0099-9660. Retrieved July 16, 2020.
- ^ ."OZY Media makes a big bet on content". CNBC. November 1, 2019. Retrieved February 5, 2020.
- ^ a b c Fischer, Sara (January 12, 2021). "OZY hits profitability on $50 million in revenue". Axios. Axios Media. Retrieved October 4, 2021.
OZY brought in $50 million in revenue last year, helping it hit profitability for the first time in its 7-year history. … The company has received acquisition offers from at least two major media companies, its founder and CEO Carlos Watson tells Axios.
- ^ "Dentsu Media Enters into A New Multiyear Partnership With OZY". Retrieved March 3, 2021.
- ^ "Goldman Sachs, Ozy Media and a $40 million conference call gone wrong". The Economic Times.
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- ^ Hays, Kali (September 23, 2020). "Katty Kay Launching First Podcast With BBC and Carlos Watson". WWD. Retrieved October 6, 2020.
- ^ a b White, Peter (September 18, 2020). "OZY Media Moves into Scripted With 'Ripped From The Headlines' Drama at Lifetime". Deadline. Retrieved September 19, 2020.
- ^ Bilton, Ricardo (February 17, 2016). "How Ozy leans on The New York Times and Wired to build its newsletter subscriptions". Digiday. Archived from the original on September 28, 2021. Retrieved October 8, 2021.
Since last July, the site has had co-branded newsletter partnership deals with Wired and The New York Times [...] OZY’s co-branded emails feature articles from both its own site and its partner brand
- ^ "These Publishers Bought Millions Of Website Visits They Later Found Out Were Fraudulent". BuzzFeed News. Retrieved September 27, 2021.
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- ^ Folkenflik, David (October 5, 2021). "OZY Media CEO says he will not shut down the company". NPR. Retrieved October 5, 2021.
- ^ Kay, Katty [@KattyKay_] (September 29, 2021). "Yesterday morning I handed in my resignation to Ozy Media. I was looking forward to working with the talented young reporters but I did not expect this! t.co/fc5Ii6ifav" (Tweet). Archived from the original on October 2, 2021. Retrieved October 3, 2021 – via Twitter.
- ^ Robertson, Katie; Smith, Ben (September 29, 2021). "At Ozy Media, a Star Journalist Quits, and a Key Investor Backs Away". The New York Times.
- ^ Kovach, Steve (September 30, 2021). "Marc Lasry resigns as chair of Ozy Media after 3 weeks, following reports of alleged misconduct at firm". CNBC. Retrieved October 1, 2021.
- ^ Schwartz, Brian (September 30, 2021). "Sharon Osbourne says Ozy Media founder Carlos Watson lied when he claimed the Osbournes invested in his company". CNBC. Retrieved October 1, 2021.
Osbourne said she had reviewed Watson's claim after CNBC reached out to her team
- ^ Folenflik, David (October 2021). "Ozy's Carlos Watson resigns from NPR corporate board after week of scandal". NPR. NPR. Retrieved October 1, 2021.
- ^ "Samir Rao - Biography". Internet Archive. Ozy. Archived from the original on September 27, 2021.
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- ^ "Ozy says it's great at discovering big names before the mainstream media. But is it?". Nieman Lab. Retrieved October 2, 2021.
- ^ a b Wise, Jeff (October 1, 2021). "'It Was Weird and Culty': Carlos Watson's Mismanagement of Ozy". Intelligencer. Vox Media. Retrieved October 3, 2021.
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- ^ Verdier, Hannah (December 27, 2017). "From Dirty John to S-Town: the 25 best podcast episodes of 2017". The Guardian. ISSN 0261-3077. Retrieved July 16, 2020.
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- ^ Childers, Chad. "Sharon Osbourne Addresses Ozy Fest Lawsuit". Loudwire.com. Retrieved January 6, 2019.
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- ^ Fouriezos, Nick (July 26, 2018). "Hillary Clinton Tells Ozy Fest Russia Could Hack This Year's Election". Ozy. Archived from the original on August 12, 2021. Retrieved October 5, 2021.
the former secretary of state voiced during a wide-ranging interview with Emerson Collective founder Laurene Powell Jobs
- ^ Zak, Dan (July 23, 2018). "Inside Ozy Fest, the progressive alternate reality where the brands outshine the ideas". The Washington Post. Retrieved October 5, 2021.
Clinton herself is here at Ozy Fest [...] Her interlocutor is billionaire philanthropist Laurene Powell Jobs
- ^ Ries, Brian (July 19, 2019). "New York cancels OZY Fest cultural festival as temperatures climb". CNN. Retrieved July 26, 2019.
- ^ "How Ozy Fest Was About To Become The Next Fyre Festival – Until A Heat Wave (And Insurance Claim) Bailed Them Out". Forbes. Retrieved October 1, 2021.
- ^ "The Future Is HBCU At OZY Fest". www.prnewswire.com. Retrieved August 17, 2021.
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- ^ "And the 2017 OZY Genius Award Winners Are …". OZY. March 30, 2017. Retrieved March 3, 2021.
- ^ "One 22-Year-Old's Journey From Special Needs to Acclaimed 'Genius'". Black Enterprise. January 20, 2021. Retrieved March 3, 2021.
- ^ Robinson, Eugene S. (October 7, 2021). "Let Me Tell You What It Was Like to Work at Ozy". The New York Times. Retrieved October 8, 2021.
- ^ Woods, Ben (September 30, 2021). "Ex-BBC presenter quits woke media company over impersonation scandal". The Telegraph. Retrieved September 30, 2021.
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- ^ Zak, Dan. "Inside Ozy Fest, the progressive alternate reality where the brands outshine the ideas". The Washington Post. Retrieved May 5, 2019.
External links[]
Wikimedia Commons has media related to Ozy Media. |
- "Ozy Media CEO Carlos Watson speaks out exclusively on TODAY" interview with Craig Melvin on October 4, 2021.
- "How Ozy Media, a startup with $70 million in funding and a star-studded list of investors, collapsed in 6 days", Fortune.com article of October 7, 2021.
- Online magazines published in the United States
- Magazines established in 2013
- Magazines published in California
- 2013 establishments in California
- Podcasting companies
- Corporate scandals
- 2021 scandals
- Fraud in the United States