Ozy Media Founder Carlos Watson Says It's Returning

In a stunning about-face, the co-founder and CEO of Ozy Media, Carlos Watson, says the publication won't be shutting down, a reversal of the news that circulated just three days prior that the publication would be shuttering. "We're going to open for business," Watson told NBC's Craig Melvin on the Today show. "This is our Lazarus moment." Given the tumultuous week, that return to business could be challenging since it'll face increased scrutiny from future investors and advertising partners. The publication had been rocked by reporting from The New York Times on Sept. 26 that revealed that Samir Rao, the other co-founder behind Ozy Media, had impersonated a YouTube official during a phone conversation with potential investors from Goldman Sachs in February. After the news broke, subsequent reporting found that Ozy Media had falsified a number of its data claims, misled advertisers and orchestrated a hostile work environment built largely around the charismatic personality of Watson. Top line Last week, Watson told Melvin Ozy Media had suspended its operations with a plan to wind down. However, following a series of conversations with investors, readers and advertising partners, the publication decided to continue operations. "I think Ozy is part of this moment. It's not going to be easy, but I think what we do with newsletters, original TV shows, podcasts and more, I think has a place," Watson said. The news came as a surprise, given the company's statement last week and the reporting that exposed many of its business practices, such as citing positive reviews from other publishers, like The Los Angeles Times, using quotes that it had placed within the paper. The news of Ozy Media's return also came as a surprise to much of the Ozy Media staff, according to Axios. The publisher had effectively laid off its 75 editorial employees when it announced its closure, and the announcement of its return to operations had not been communicated to them. Between the lines After the bombshell reporting from The Times, a number of high-profile departures further weakened Ozy Media. On Sept. 30, billionaire investor and chairman of the Ozy Media board Marc Lasry announced he was stepping down from his seat on the board. Ron Conway, a Silicon Valley investor and Ozy Media backer, also announced last week that he had returned his shares to the company. In conversation with Melvin, Watson said that the only remaining board members were himself and Michael Moe, the founder and CEO of GSV Holdings. In addition to facing a winnowed staff of investors and board members, Ozy Media will likely have to contend with broader issues of trust. Following reporting that the publisher had deceived its investors and misled key editorial leaders, it could struggle to restaff and convince advertising partners to go into business with it. Bottom line Ozy Media could face a challenging return to business as usual, especially now that it will likely face increased scrutiny from future investors and advertising partners. Watson stressed the value of its podcasts, newsletters, festivals and original TV programming, but admitted that the publisher could do better when it comes to data, marketing and leadership. Walmart and OZY Media Partner To Propel Stories of Black Entrepreneurship, Sustainability

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Ozy Media Is Returning in Its 'Lazarus Moment,' Founder Carlos Watson Says

The publisher had previously announced its shutdown on Oct. 2

Mark Stenberg

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