Top Line

Hedge fund billionaire Mark Larry has resigned as president of OG Media, his spokesman announced Thursday, the latest among ongoing fallout over a series of reports raising serious questions about the digital media company’s business practices. Marked the high-profile departure.

important facts

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According to a statement from his spokesperson shared with several media outlets, Larry has stepped down from Ozzy’s board, but will remain an investor.

The billionaire businessman, who also co-owns the Milwaukee Bucks, was Nominated As head of the company’s board just three weeks ago.

According to the new York TimesLasry was the lead investor in Ozy’s $35 million fundraising round in 2019.

He also in a statement many times Ozzie’s new scrutiny sparked accusations: Sameer Rao, one of the company’s co-founders, impersonated a YouTube executive in an attempt to obtain a $30 million investment from Goldman Sachs.

OG CEO Carlos Watson called the incident the result of a mental health crisis on the part of Rao, who “took time off from work after the call” but then returned to the company.

Larry said he and the board fully supported the way everything was handled, describing it as an “unfortunate one-time incident” and applauding the OG leadership’s “compassion” towards Rao.

important quotes

“I believe that moving forward, the OG needs experience in areas such as crisis management and investigation, where I do not have specialized experience,” Larry said in the statement. “I remain in the company as an investor and wish it all the best for the future.”

big number

$1.8 billion. larry’s price is accordingly Businesshala’ an estimate. He is the co-founder and CEO of Avenue Capital Management, an investment firm that manages approximately $10 billion in assets.

main background

blast new York Times The report, which also detailed dubious claims about the company’s website traffic, newsletters, subscriptions and television show distribution, opened up a flood of claims against Ozzy. Businesshala’ own reporting reveals how the company falsely promoted one of its flagship products, the annual Ozzie Fest. After exaggerating ticket sales, celebrity bookings and sponsorships, Ozzy’s 2019 festival was dangerously close to being “a fair festival,” an employee told Businesshala, but luckily avoided by the heatwave at the time. was taken. CNN on Thursday published A report in which it detailed a toxic workplace culture at the company based on interviews with several former employees.

what to see

OG Media is reportedly being investigated by the FBI, as well as the law firm Paul, Weiss, Rifkin, Wharton & Garrison, retained by the company’s board earlier this week to review its business activities Is.

“Ozzie Fest Was About to Be the Next Fyre Festival—Until a Heat Wave (and Insurance Claims) Kicked Them Out” (Businesshala)

Goldman Sachs, Ozzy Media, and a $40 million conference call gone wrong (new York Times)

“18 Hour Days and Panic Attacks: Former OG Employee Alleges Abusive Environment” (CNN)