The deal reportedly closed for less than $50 million well below the $250 million valuation that Mashable received as recently as March 2016. Mashable has also announced that the company’s Asia Pacific office will close.
The $250 million valuation was made in the spring of 2016 after Turner, a broadcasting arm of Time Warner, led an investment round for the company which reached $15 million. This made Mashable, which was created in 2005 by Pete Cashmore from his home in Aberdeenshire, one of Scotland’s biggest digital success stories.
But as details of the deal emerged this week, it appeared that Ziff Davis was buying the site for much less than this valuation.
According to tech news site Recode, Mashable’s new owners plan to keep the platform running, but will refocus the site onto tech and tech-lifestyle content, which is likely to lead to job losses.
While it is not clear the exact number of staff Mashable is letting go, some staff took to Twitter to announce the move, including its APAC Editor Victoria Ho.
Broken hearts at Mashable Asia today. If anyone is looking to hire a smart, adaptable news reporter with a great attitude, @Yvettweets has my wholehearted backing 100x over. You won't regret hiring her ever.
— Victoria Ho (@vickiho) December 6, 2017
According to Recode, Mashable’s founder Pete Cashmore announced the intention to cut staff in a memo. Cashmore is reported as saying: “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”.