Ozy Media is not in Kansas anymore. Or in any other jurisdiction. The company has decided to cease operations, according to a Twitter post on Wednesday. “In light of its current operational and legal challenges, the OZY board has determined that it’s in the best interests of its stakeholders to suspend operations immediately,” the tweet said. The decision comes shortly after Ozy Media founder Carlos Watson was arrested and charged with fraud by federal investigators, according to multiple news reports.
NEW YORK (AP) — The founder of the troubled digital start-up Ozy Media pleaded not guilty Thursday to federal fraud charges accusing him of scheming to prop up his financially […]
The Justice Department and the SEC have contacted companies that discussed investing in the Silicon Valley media business.
The company’s rapid downfall — and EEO Carlos Watson’s unexpected Today interview — pulled back the curtain on the open secrets of digital media it attempted to exploit.
In the first of what may well become a string of lawsuits against embattled Ozy Media, a fund manager that invested in the site accused it of fraud and asked for compensatory and punitive damages in a jury trial. LifeLine Legacy Holdings of Beverly Hills, Calif., which put more than $2 million into the company co-founded and led by Carlos Watson, claimed in a lawsuit that Ozy had “engaged in fraudulent, deceptive and illegal conduct” when the firm was considering early this year whether or not to invest.
CEO Carlos Watson has dismissed reports that his embattled company is shutting down, but it remains to be seen if wary advertisers will come rushing back.
Exclusives
Carlos Watson, a former former cable-news commentator and host who founded Ozy in 2013, told CNBC Monday morning that he has been meeting with advertisers and investors over the weekend and that he wants Ozy to continue to be around. The company did not answer emailed questions Monday about whether employees were still working or getting paid or how Ozy intended to stay open.
What They Saw In Ozy
The story behind the story is about the elite investors who plowed millions into a media dream without much due diligence, persuaded by the charm of Ozy’s head, Carlos Watson.
After less than a week since Ozy Media was exposed for inflating numbers and potential fraud, the media venture is shutting down.
Producers say they were led to believe they were making a talk show for A&E, which said no to the program. “You are playing a dangerous game with the truth,” the top producer, Brad Bessey, wrote in his resignation email.
Ozy Media Chairman Marc Lasry quit the embattled company Thursday, under fire for a series of questionable business practices. COO Samir Rao had previously taken a leave of absence from the company after it was revealed he had impersonated a Google executive on a fundraising call with Goldman Sachs.
Former BBC News anchor and correspondent Katty Kay, who had just joined Ozy Media in late June, has announced her exit following the recent controversy swirling around revelations of the digital company’s practices. “Yesterday morning I handed in my resignation to Ozy Media,” Kay wrote on Twitter. “I was looking forward to working with the talented young reporters but I did not expect this!”
