Mic, the digital news publisher geared toward millennials, has a deal in place to sell itself to Bustle Digital Group for just $5 million, according to a report Thursday, despite touting a $100 million valuation as recently as 2017.
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The left-leaning news site laid off the vast majority of its editorial staff on Thursday in preparation for the sale. The impacted employees were informed of the decision at an all-hands meeting, according to the Wall Street Journal, which reported the terms of sale, citing a source familiar with the matter.
The apparent sale price is a major departure of the $100 million valuation Mic claimed following an April 2017 financing round. Mic raised more than $60 million in outside investments in seven financing rounds, including funds from WarnerMedia Investments and Lightspeed Venture Partners, according to CrunchBase.
"I can confirm that Bustle Digital Group has acquired Mic. We have no further comment," a Bustle spokesperson told The Hollywood Reporter. Bustle Digital Group includes online brands such as Elite Daily and The Zoe Report.
Mic’s once-booming readership has dwindled in recent months. The company has struggled to find a sustainable business model and recently lost a crucial deal with Facebook to publish news videos on the platform, Recode reported.
Bustle reportedly acquired Mic as part of a bid to bolster political coverage ahead of the 2020 presidential election.