Publishing conglomerate Ziff Davis has officially bought online news site Mashable for a mere $50 million, according to Recode.
Last month, we followed up on a report in the Wall Street Journal mentioning a sale was in the works.
The sale is now final and it’s a hell of a deal, considering the site’s valuation was $250 million just one year ago, when Time Warner’s Turner led a $15 million round in the company.
The all-out sale of Mashable comes after the publisher reportedly tried and failed to secure additional funding throughout this year. Much of that failure may be due to a projected loss this year after pushing towards more video content.
Ziff Davis now plans to refocus the news site toward tech and tech-lifestyle content, which is what Mashable originally focused on when it first launched in 2005.
Along with that refocus comes some inevitable layoffs. According to an internal letter sent to Recode, at least 50 people will be laid off due to the transition, though Mashable founder Pete Cashmore will stay on.
“At our last meeting, you asked whether there would be changes to the organization post-acquisition,” the letter from Cashmore to employees reads. “Unfortunately, I must confirm that this will be the case. It is never easy to see colleagues and friends depart the company. While such decisions are difficult and painful, I can assure you they were made only after very careful consideration and based on what we firmly believe will provide Mashable with a strategy and structure that will drive a successful, sustainable and profitable future.”
The news comes as other online outlets like BuzzFeed announced it would be laying off 100 people, or six percent of its workforce, last week.
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By Tech Crunch