The new year is off to a rough start for employees of Cheddar News. On Tuesday, some staffers were placed on unpaid leave as a result of “unforeseen internal and external factors that required rapid adjustments in our business strategy,” according to a New York Times report.
In an e-mail sent to staff, an unknown number of furloughed employees were immediately barred from working at the millennial-targeting financial streaming news service .
Over the Christmas holiday period, Cheddar News owner Altice USA sold the outlet to Archetype, a media company owned by private equity firm Regent LP.
Regent and Archetype spokespeople did not offer any comment when approached by the Times.
Archetype comprises lifestyle and finance, military and government, and history entities, including the Western lifestyle brand Sunset, Military Times, Army Times, Defense News, HistoryNet, and the RateMyProfessors website.
Meanwhile, Regent LP’s holdings span a global portfolio featuring technology, media, consumer products, retail, and industrial sectors.
Cheddar’s sale had been in the works for some time. The media company’s financial health has been shaky as its revenue has primarily come from the digital ad market, which has taken a heavy beating in recent years.
Cheddar was launched in 2016 by former Buzzfeed founder, president, and COO Jon Steinberg as something of a “CNBC for millennials,” seemingly the future of financial news coverage — featuring interviews with c-suite executives, newsmakers, and journalists from the floor of the New York Stock Exchange.
Unlike most TV channels, Cheddar didn’t strike traditional deals with TV providers to tap into the lucrative affiliate fees market; instead, it mainly relied on ad revenue, exacerbating its financial struggles.
Cable company Altice USA bought the startup for a hefty $200 million in 2019 and struggled to turn the streaming service around.
In June 2023, Cheddar laid off some of its staff, including anchor Baker Machado, who had spent more than six years at the network.