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Carlos Watson interviewing Malcolm Gladwell at OZY Fest. Photo courtesy of OZY Media.

OZY Media, a media and entertainment company led by Carlos Watson, said Friday that it's raised $35 million in new venture capital funding.

The bottom line: OZY originally launched as a digital magazine for the "change generation," but has moved its focus toward TV production, podcasts, and live events.

  • OZY's new funding round was led by Marc Lasry, a hedge fund manager and co-owner of the Milwaukee Bucks. Lasry also will join OZY's board of directors.
  • Other investors included Interlock Partners, LionTree, Atinum Investment, GSV Capital, Axel Springer, Emerson Collective, and three partners of buyout firm Clayton, Dubilier & Rice.
  • The Silicon Valley-based company has now raised around $70 million since being founded in 2013.

The big picture: Watson tells Axios that the shift toward TV was driven in part by Facebook algorithm changes, and in part by the explosive growth in new TV platforms (including all the streaming services).

  • He also says that the annual OZY Fest event will return to New York City next summer, after this year's event was canceled due to excessive heat.
    • "It was zero percent fun," says Watson of the cancellation, after OZY had sold more than 100,000 tickets. "It's something we learned from."
  • Watson declined to comment on revenue, except to say that OZY's top-line has grown around 50% year-over-year for the past four years, and that the company expects to be profitable in calendar 2020.

Go deeper

Biden floats roughly $2 trillion price tag for reconciliation

President Joe Biden departs from a House Democratic caucus meeting at the U.S. Capitol. Photo: Al Drago/Bloomberg via Getty Images

President Biden, meeting with House Democrats on Capitol Hill on Friday, indicated they must further delay a final vote on a $1.2 trillion bipartisan infrastructure bill and scale back his $3.5 trillion social spending package to around $2 trillion range if either is to pass, lawmakers told Axios.

Why it matters: Biden made clear he wants to keep the two packages linked together and that he is optimistic there can be an agreement.

11 hours ago - Health

Sotomayor allows NYC schools' vaccine mandate to stay in place

Photo: Paul Marotta via Getty Images

U.S. Supreme Court Justice Sonia Sotomayor on Friday blocked a challenge to New York City's vaccine requirement for public school teachers and employees, allowing the mandate to remain in place.

Why it matters: Mayor Bill de Blasio announced in August that all 148,000 staff members of the largest U.S. school district would need to submit proof of at least one dose of a COVID vaccine or risk unpaid leave until September 2022.

Ozy Media is shutting down, amid fraud allegations

Illustration: Rae Cook/Axios

Embattled media startup Ozy Media threw in the towel on Friday afternoon, announcing that it would shut down. This comes less than a week after the New York Times first reported on securities fraud allegations, which was followed by a series of stories that shed a negative light on the company's business and management practices.

Why it matters: Ozy told Axios earlier this year that it had 75 full-time employees, all of whom are now out of a job.

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