The digital-media company Mashable has decided to sell itself to a magazine publisher for $50 million, which is considerably less than Mashable’s most recent valuation of $250 million.
The publisher of the 90-year-old PC Magazine, Ziff Davis, wanted to take over a strong digital firm since quite a long time and is now buying Mashable for $50 million – 20% of Mashable’s valuation of $250 million along with a $15 million round funding in 2016.
The New York based firm has been trying to sell itself or raise additional outside capital for months. The firm was founded back in 2005 and soon, became recognized enough that it served as an example of profitable digital media. However, with time, the company went down a little. Mashable laid off 30 employees in 2016 when it made a turn to video content that helped it bring advertisers.
Last year, the company went through a net loss of $10 million as revenue climbed 36% to $42 million. Now, Mashable has targeted $50 million revenue and looks like it’s on a road to a considerable loss, reported Wall Street Journal.
An insider from Mashable informed that the employees are all concerned because there are no announcements done to the staff regarding the deal and they are getting to know about it from outside news reports. Both Mashable and Ziff Davis did not respond to a request for comment, wrote Business Insider.