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Marc Lasry, the billionaire investor, has stepped down as chair of Ozy Media after solely three weeks within the function, deepening the disaster on the digital media firm.
The web media enterprise has come underneath fireplace after a report in The New York Occasions questioned its viewers figures and revealed that one in every of its founders had impersonated a YouTube government on a convention name with Goldman Sachs throughout a fundraising course of. Ozy appointed legislation agency Paul, Weiss, Rifkind, Wharton & Garrison to overview its enterprise practices this week.
Lasry, who co-founded the hedge fund Avenue Capital and is the co-owner of the Milwaukee Bucks basketball staff, invested in Ozy and joined the board following a $35m funding spherical in 2019, the corporate said on the time.
He was appointed Ozy’s chair earlier this month, having mentioned that he hoped to develop its investor base and lead a brand new section of development for the eight-year-old firm.
However in an announcement on Thursday, Lasry mentioned: “I consider that going ahead Ozy requires expertise in areas like disaster administration and investigations, the place I should not have specific experience. For that cause, I’ve stepped down from the corporate’s board. I stay an investor within the firm and want it the very best going ahead.”
Lasry’s exit follows the resignation of former BBC journalist Katty Kay, one in every of its star hires, who mentioned the allegations made by The New York Occasions had been “severe and deeply troubling”.
Ozy’s different buyers embody the German writer Axel Springer, SuRo Capital and Emerson Collective, the organisation led by Laurene Powell Jobs. The corporate has raised greater than $80m since its founding, in keeping with PitchBook information.
On Tuesday the enterprise agency SV Angel surrendered its shares within the firm after having invested in a seed spherical in 2012, mentioned one particular person briefed on the choice. SV Angel and its founder Ron Conway declined to remark.
The New York Occasions reported this week that Samir Rao, co-founder of the corporate and its chief working officer, had impersonated a YouTube government on a convention name with Goldman Sachs, which was a possible investor.
Ozy has confirmed the incident occurred, saying it was the results of a psychological well being episode. The board requested Rao to take a go away of absence pending the results of the legislation agency’s investigation.
Carlos Watson, chief government, co-founder and the general public face of Ozy, earlier this week launched an announcement which included a quote from Lasry confirming that the board had been made conscious of the Goldman Sachs name and supported the best way it was dealt with. “The incident was an unlucky one-time occasion,” Lasry mentioned within the memo.
Lasry is greatest generally known as co-owner of the Bucks basketball franchise, which he purchased with the personal fairness investor Wes Edens in 2014. This 12 months the Bucks won their first NBA championship in half a century, led by two-time league Most worthy participant Giannis Antetokounmpo.