Crypto media outlet CoinDesk has cut its editorial staff by 45% as its parent company DCG prepares to introduce strategic investors.
Rumours that DCG is negotiating a sale of its crypto media outlet CoinDesk have been circulating for a while. Reports by The Wall Street Journal (WSJ) claim that the crypto conglomerate was reportedly finalizing a $125 million deal to sell a portion of the company. DCG would reportedly retain a stake in the company.
Reports by crypto news outlet The Block claim that CoinDesk let go of 45% of its editorial staff as its parent company Digital Currency Group (DCG), prepares for a partial sale of the company. DCG purchased CoinDesk in 2016 for $500,000. The company was established in 2013.
In an internal memo viewed by The Block, the firm was soon to have an “all-hands” meeting to discuss the layoffs.
In an email, Kevin Worth, CoinDesk CEO, told staff:
“The purpose of the meeting is to inform everyone that today several roles, predominantly in our media team, were impacted by a reduction in force.”
Adding,
“This is an incredibly difficult message to send to everyone over email and yet I also wanted everyone at CoinDesk to know as soon as possible what is happening today. This was a required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk Inc.”
According to The Block’s report, which cites someone familiar with the matter, CoinDesk would let go of 45% of its editorial team or 20 people.
DCG Will Retain a Stake in CoinDeskCoinDesk recently appointed financial advisers to “help bring on new institutional and strategic investors” alongside its parent company. DCG has faced severe pressure from crypto exchange Gemini over a dispute involving the “Earn” program. In July, Gemini announced that it had filed a lawsuit against DCG.
The reports from the WSJ indicated CoinDesk was in the final stages of a partial sale of the company to a crypto syndicate led by crypto investor Matthew Roszak of Tally Capital. As part of the $125 million deal, DCG would retain a share of CoinDesk.
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