The Messenger, a promising news website that aimed to revolutionize the media landscape, is set to shut down less than a year after its launch, making it one of the notable failures in the realm of online news. The sudden collapse adds to the challenges faced by the news industry, grappling with a series of cutbacks in recent months.

Ambitious Beginnings and Editorial Vision

The founder, Jimmy Finkelstein, envisioned The Messenger as a nonpartisan force in American news, recruiting about 300 experienced journalists from publications like Politico, Reuters, TLNA News, and The Associated Press. Finkelstein had grand plans for the website, comparing it to esteemed institutions such as “60 Minutes” and Vanity Fair. He criticized mainstream channels like CNN and TLNA News, highlighting what he perceived as inconsistencies in their coverage of events like the Jan. 6 attack on the U.S. Capitol and the southern border.

Overambitious Goals and Financial Struggles

Finkelstein, with decades of publishing experience, secured $50 million in investments for the startup, attracting backers like Josh Harris and Thomas Peterffy. However, despite their financial support, The Messenger faced challenges. By the end of the previous year, the company had generated only $3 million, with a mere $1.8 million in cash on hand. It incurred losses of approximately $38 million from its initial funding round, while spending over $8 million on offices in Florida, Washington, D.C., and New York.

Internal Conflicts and Tepid Reception

The launch was marred by internal conflicts, leading to the departure of key personnel like politics editor Gregg Birnbaum. Employees faced demands to produce stories based on competitors’ articles, resulting in dissatisfaction. Industry critics, including Columbia Journalism Review and Nieman Lab, offered a lukewarm reception to The Messenger’s debut.

Downward Spiral and Last-Ditch Efforts

Recent weeks witnessed a decline in fortunes. President Richard Beckman cited health issues as he departed, the company faced financial strain, and staff cuts were implemented to conserve cash. Despite Finkelstein’s efforts to raise additional funds, The Messenger ultimately failed to secure the necessary capital to stay afloat.

Missteps and Fatal Flaw

The Messenger’s reliance on tech giants like Google and Meta for readership proved to be a fatal flaw. Instead of cultivating a direct relationship with the audience through newsletters and in-person events, the startup struggled with disappointing digital subscribership and slumping advertising revenue. S. Mitra Kalita, founder of Epicenter-NYC and URL Media, pointed out that The Messenger’s downfall was rooted in building on the expertise of an outdated internet era, where platforms like Facebook were no longer reliable sources of traffic.

A Cautionary Tale for News Startups

The Messenger’s closure serves as a cautionary tale for news startups, emphasizing the importance of sustainable business models, diversified revenue streams, and direct audience engagement. As the news industry grapples with ongoing challenges, understanding the evolving dynamics of digital media becomes crucial for future endeavors.