The Messenger is counting on a sudden and dramatic advertising turnaround to survive
Publishing timestamp: 2024-01-10 12:20:11
Summary
The struggling news outlet, Messenger, is seeking a cash infusion of $20 million for equity in the business. Despite having little cash left, the company plans to add 19 more employees to launch Messenger TV. The company had initially planned to cut 40 jobs in 2024, but those figures have been reduced. Messenger is urging potential investors to bet on a rebound in advertising revenue, as it attempts to stop its cash burn. The company ended 2023 with a net loss of $43 million and is hoping to become profitable by the end of 2024. However, the company's financial struggles and recent layoffs have raised concerns. Messenger is relying on political advertising and Google search to drive programmatic advertising. The company's investor deck highlights its cash problems and the challenges it will face in convincing investors to provide more funding. Without additional investment, Messenger predicts negative cash balances by June, but hopes to generate positive free cash flow by August.
Sentiment: NEGATIVE
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Keywords: breaking news: politics, meta platforms inc, business news, technology, breaking news: business, media, amazon.com inc, alphabet class c, alphabet inc, politics,
Source: https://www.cnbc.com/2024/01/10/the-messenger-bets-survival-on-huge-ad-revenue-turnaround.html