Photo: Mic

Millennial-focused content site Mic has laid off most of its staffers amid a rumored acquisition by Bustle Digital Group, whose brands include Bustle and Elite Daily.

Why it matters: Mic has been struggling to survive in the wake of Facebook's 2017 algorithm change, which essentially stopped driving traffic to publishers.

  • What's in it for Mic? An exit. News of Mic's struggles have been widely documented over the past year. Mic CEO Chris Altchek confirmed acquisition interest to Axios in September.
  • What's in it for Bustle? It gains access to Mic's content management system and its engineering talent, which is tough to come by in New York City.

Mic laid off the majority of its editorial staff Thursday morning, without any notice, sources tell Axios. The layoffs were first reported by Recode and confirmed by Axios.

  • Recode reported Wednesday that Mic looked to sell after an expensive video deal with Facebook ended.
  • Mic publisher Cory Haik resigned Thursday, and sources tell Axios that she cleared out her desk on Wednesday.
  • Several sources tell Axios that editorial staffers were the primary group being cut, while sales and technology employees could remain.

Between the lines: Mic is Bustle's latest cheap acquisition of a struggling millennial-focused digital media brand.

  • In August it acquired Flavorpill, an online publisher and experiential brand focused on events, after previously acquiring fashion designer Rachel Zoe's "The Zoe Report." In 2017 it bought Elite Daily, which is outperforming its internal audience and revenue goals, says Bryan Goldberg, founder and CEO of Bustle Digital Group.
  • Goldberg plans to relaunch the media gossip blog Gawker in early 2019, two years after it was shut down.

Reports suggest that Mic is being sold for less than $5 million, which is an astonishingly low figure given that Mic had raised nearly $60 million from venture capitalists and media companies like Time Warner and Bertelsmann. Its most recent valuation was north of $100 million.

Go deeper

19 mins ago - Politics & Policy

Scoop: Republican super PAC raised $92 million in September

Senate Majority Leader Mitch McConnell. Photo: The Washington Post/Getty Images

The Senate Leadership Fund, a super PAC associated with Senate Majority Leader Mitch McConnell, raised more than twice as much this September as it did two years ago, according to a FEC filing that will go live Tuesday night.

By the numbers: The SLF raised $92 million in September, spent $105 million, and ended the month with $113 million cash on hand, as Republicans work to maintain their majority on Nov. 3.

Erica Pandey, author of @Work
19 mins ago - Economy & Business

The evolution of HR

Illustration: Aïda Amer/Axios

Before the onset of the coronavirus pandemic, human resources jobs were on the automation chopping block. Now they're essential.

The big picture: HR departments across the world have pulled off the incredible feat of turning companies from in-person to remote overnight, and as the pandemic continues to determine the future of work, HR has been elevated from a back-office function to a C-suite conversation.

28 mins ago - Technology

Netflix stock sinks after Q3 subscriber miss

Illustration:Rebecca Zisser/Axios

Netflix's stock was down more than 5% in after-hours trading Tuesday after the tech giant reported that it missed expectations on global subscriber growth for the quarter.

Why it matters: Netflix experienced explosive growth during the first half of the year. It wasn't expected to match that growth this quarter, when lockdowns lifted and after new competitive services had launched, but analysts were still expecting it to meet expectations of at least 3.3 million net new global subscribers.