The fledgling news site Semafor plans to buy out the nearly $10 million investment it received from the disgraced founder of the FTX bitcoin exchange, Sam Bankman-Fried.
The media venture formed by former Bloomberg CEO Justin Smith and former Additional York Times media columnist Ben Smith plans to buy out Bankman-stake Fried’s while it “explores raising new capital,” according to a Wednesday story from the New York Times.
The Times quoted Semafor’s co-founder and CEO, Justin Smith, as saying, “We plan to repurchase Sam Bankman-interest Fried’s in Semafor and place the money in a separate account until the relevant legal authorities provide guidance on where the money should be returned.”
According to the magazine, Semafor’s fundraising dialogues have not yet resulted in an investment. The most recent development means that Semafor will not be able to finance growth as rapidly and will have to set aside funds until it can replace the investment.
According to The Times, before it began publishing, Semafor signed contracts with a number of advertisers for more than $2 million each, assuring the company a monthly financial flow.
The most recent development means that Semafor will not be able to finance growth as rapidly and will have to set aside funds until it can replace the investment.
Semafor
Since signing those initial advertising contracts, the business has negotiated ad deals ranging from $100,000 to over $2 million, according to the journal, and Semafor intends to make at least $15 million in income through live events and advertising this year.
Smith did not comment on his startup’s financials, but he did say that it “exceeded its audience and ad revenue growth targets.”
Semafor did not respond to calls for comment. The Wrap reported earlier this month that the investment would be refunded, although specifics were not provided.
Prior to FTX’s demise, Bankman-Fried provided more than a third of the initial $25 million finance for the media company.
AP
Prior to FTX’s demise, Bankman-Fried provided more than a third of the initial $25 million finance for the media company. In November, FTX declared bankruptcy after a $8 billion accounting hole was discovered. A month later, federal authorities accused Bankman-Fried of fraud. He entered a not-guilty plea.
The crypto-fraudster had contributed to other media outlets, including Vox Media and ProPublica, who both stated they would return the funds quickly after Bankman-arrest Fried’s at the end of last year. However, Semafor stated that it was awaiting instructions from legal authorities to determine its next moves, which sparked criticism from the media.
Semafor was founded in October and currently employs over sixty journalists from across the world who cover a wide range of themes, including politics, policy, business, economics, technology, environment, energy, media, and entertainment.
»Media firm Semafor will buy Sam Bankman-$10M Fried’s shareholding«