Ozy U-turn: Scandal-ridden digital media company will stay open
In a rapid change of course, digital media startup Ozy has said it is “open for business” again, just days after it shut down.
“This is our Lazarus moment,” founder Carlos Watson told US broadcaster NBC, as he announced Ozy, which collapsed mere days ago after its co-founder was exposed for deceiving Goldman Sachs in a bid to close a $40m deal, was relaunching.
Watson described the last scandal-hit week as “traumatic” and “heartbreaking”, after he’d told the New York Times last week that his co-founder and chief operating officer Samir Rao, the impersonation culprit, had suffered a mental breakdown which provoked the incident.
But in a change of heart, Watson said he’d been inspired to keep going with the company after conversations with advertisers and investors over the weekend.
“I think Ozy is part of this moment,” he said. “I think what we do… has a place.”
Last week’s scandal prompted former BBC journalist Katty Kay to resign and call the allegations “serious and troubling.” Hedge fund manager Marc Lasry also stepped down as chairman, after just three weeks at the helm, although he remains an investor in the media startup.
Watson launched Ozy in 2013, on a mission to take on the likes of Vice and Buzzfeed with coverage that would disrupt the journalism business.