Puck's Paramount Predicament
On Wednesday afternoon, by way of a Reuters report, Puck announced that it is in advanced talks with RedBird Capital Partners for an investment that would value the digital media upstart at an eye-popping $250 million. The infusion of capital, which Reuters reported would require Puck’s current investors selling their stakes to RedBird, would make the Gerry Cardinale-led firm the largest investor in the publication.
Suffice to say, the financial transaction is great news for the employees of Puck. If the deal closes, many of them will be millionaires, at least on paper, given the staggering valuation. (Congratulations!) Of course, across the rest of the industry, the news was received much differently…
Related Knowledge Center: State of the business model
The traditional journalism business model has long since collapsed, and news organizations have shrunk or disappeared entirely. While a number of promising experiments are under way, the public has not shown a willingness to buy what news organizations are selling.