Mashable Sold To Ziff Davis; Plans Layoffs

(RTTNews) - Struggling digital media company Mashable is laying off 50 employees after it was sold to publisher Ziff Davis in a fire sale, according to media reports. Ziff Davis is a digital media subsidiary of Los Angeles-based tech-services company J2 Global Inc. (JCOM).

Mashable's sale was for reportedly less than $50 million, representing just one-fifth of its prior valuation of $250 million after Time Warner Turner led a $15 million investment round in the company in 2016.

New York-based Mashable closed the sale to Ziff Davis on Tuesday. Pete Cashmore, Mashable's founder, as well as editor-in-chief Jessica Coen will reportedly stay with Mashable under Ziff Davis' ownership.

Mashable was created by Pete Cashmore as a blog from his home in Aberdeen, Scotland, in July 2005. The Time Magazine named Mashable as one of the 25 best blogs in 2009.

In June 2016, Mashable acquired YouTube channel CineFix from Whalerock Industries. However, the company also laid off about 30 employees last year.

Cashmore announced the latest layoffs to Mashable staff in a memo, according to Recode.

"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," Cashmore said in the memo.