Ozy Media, The Infamous Media Company, Is Shutting Down.
Key Sentence:
- American media company Ozy Media announced its closure amid growing controversy over its business practices.
- "It is with a heavy heart that we must announce today that we are closing Ozzy's doors," a company statement said.
It was reported that Ozy's chief operating officer defrauded potential investors during a conference call and is now being investigated by the FBI. Then some of the big advertisers parted ways with the company. Ozy President Mark Lasry and former journalist Katie Kay also left.
In another twist, Sharon Osbourne, wife of rock star Ozzy Osbourne, claims that company CEO Carlos Watson falsely claimed the couple invested in the business. Watson made the allegations in a television interview with in 2019 after settling a trademark dispute with the pair.
Former journalist Katie Kay leaves the American media company.
Osborne told on Thursday, "This guy is the biggest idiot I've ever seen." Neither Mr. Watson nor Ozy Media has made a public statement about the allegations.
Analyzer box from James Clayton, a North American tech reporter
These accusations are outrageous, almost unbelievable - part of the toxic corporate culture in parts of Silicon Valley. Here they often say that your company is more significant, innovative, successful, and networked than it is. This is seen as "rush" or "hype."
However, "Fake until you succeed" - as it is sometimes called - has led to some of the big scandals in Silicon Valley history. The CEO and founder of Theranos are currently on trial in San Jose on significant blood test fraud charges.
Most companies create dreams by selling them, which will one day come true. That's why we have computers and smartphones. Some of the things that Ozy Media alleges are pretty common in Silicon Valley. Exaggerating the popularity of your content is a classic genre - something many companies blame.
But there is another special allegation - that if they are authentic, legal action could be taken. This is a story that will deeply worry investors who are struggling to separate scammers from visionaries. Ozy Media, which launched in California in 2013, produces podcasts, TV series, and shows on the left and has received an Emmy for his work.
According to reports, Rao claims that Ozzy's videos are viral on YouTube.
Watson has since apologized and said Rao was suffering from a "mental health crisis" at the time. Despite increased scrutiny, Ozzy said he had opened an internal investigation this week, and Rao was taking time off.
On Thursday, Mr. Lasry, who owned the Milwaukee Bucks NBA basketball team, stepped down as chairman after just three weeks. In a statement, he said, "I believe that Ozzy's advancement requires experience in areas such as crisis management and investigation, of which I have no specific knowledge."
He added that he would remain an investor in Ozy Media.
On the same day, it was reported that significant advertisers were running their ad campaigns with Ozy. Target, Goldman Sachs, and Airbnb did not immediately respond to requests for comment. However, Ford said, "we are discontinuing advertising as Ozy Media is addressing its current business challenges," and US bank Ally Financial said its relationship with Ozy has been maintained "in light of recent events."
On Wednesday, Kay said she had "no choice but to cut ties and call the New York Times allegations" deeply troubling. Veteran Television joined Ozy in June after serving more than three decades. On Friday, the Times published new allegations about Ozzy by former producer Brad Bessie.
Bessie, who was hired this summer to produce the talk show hosted by Carlos Watson, had been told early on that she would appear on prime-time A&E. However, he later learned that A&E had turned down the show before recording, the Times reported. According to reports, Mr. Bessie left the company, accusing Mr. Watson and Mr. Rao of "plays a dangerous game with the truth." Finally, The Carlos Watson Show appeared on Ozy's website and YouTube itself.