Newsweek in Chaos as Top Editors, Reporters Fired and New York Staff Sent Home

Newsweek Media Group fired editor-in-chief Bob Roe and executive editor Ken Li Monday. Additionally, TheWrap has learned that the publication has parted ways with the top reporters of its investigations unit, including Celeste Katz and Josh Saul. Josh O’Keefe, a reporter for Newsweek’s affiliated International Business Times, was also dismissed.

In an email to employees late Monday, company CEO Dev Pragad announced that IBT Managing Editor Nancy Cooper would take up leadership as “acting editor” of Newsweek.

The company suggested that employees who were not fired go home Monday — potentially without pay — though few complied, TheWrap has learned. And several other staffers, including veteran political reporter Matthew Cooper, resigned on Monday.

Also Read: Newsweek Chairman and Finance Director Resign Amid Ad Fraud Accusations

The staff turmoil comes amid questions about the media company’s financial viability amid legal woes over sexual harassment and questions about the veracity of its online traffic.

“IBT employees were not paid last night,” a current Newsweek employee told TheWrap. “They claimed we were about to get paid by 3 and 5 today and if we don’t get paid by 5 I am going to lead the f—ing revolution.”

Company management fired “everyone on that investigative team and a ‘payroll error’ last night means nobody in the company got paid,” said the employee. “They are apparently in a ‘work stoppage’ and being sent home for the day.”

As the Daily Beast reported, members of the Newsweek investigations unit had written several pieces critical of the company in recent days, something an internal source within the company suggested was related to today’s actions.

Also Read: Newsweek Chief Content Officer Placed 'on Leave' After Sexual Misconduct Accusation

“They were all independently working on a story about ‘the Church,’ a.k.a. our owners,” said the employee.

A second Newsweek insider said a general panic had swept remaining employees.

“We were told that we were ‘welcome to go home’ earlier today, but no one has left. Everyone is downloading their articles off the website, talking with their sources and transferring their work contacts. The unofficial general agreement is to stay for more information but not work at all. There is alcohol out and most people are just comforting each other,” said the individual.

“The idea of walking out on the job in response to our owners firing Bob and Ken was briefly discussed.”

Also Read: Newsweek, IBT Headquarters Raided by NYPD

A rep for Newsweek Media Group, which oversees both IBT and Newsweek, has not responded to TheWrap’s request for comment.

On Friday, Newsweek’s chairman, Etienne Uzac, and his wife, finance director Marion Kim, both left the company after a report in BuzzFeed said that the media company had engaged in ad fraud and used dodgy tactics to artificially increase traffic.

Last month, Newsweek’s office was raided by the NYPD and the Manhattan District Attorney’s office for reasons that remain unclear. Employees at the time reported that officers had been taking pictures of computer servers.

Also last month, the company’s chief content officer, Dayan Candappa, was placed on leave after sexual misconduct accusations at a previous employer surfaced.

9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:
Getty Images
Disney to acquire most of 21st Century Fox for $52.4 billion

In a massive deal that could change the entertainment industry even more than AT&T-Time Warner, Disney announced plans to acquire Fox's film and TV studios and much of its non-broadcast television business, including regional sports networks and cable networks such as FX, FXX and Nat Geo. Disney would also pick up Fox’s stake in the European pay-TV giant Sky — and be better positioned to win regulatory approval to complete the acquisition of the 61 percent of the company it does not already own.
Discovery Communications agrees to buy Scripps Networks Interactive for $11.9 billion

The merger of two cable powerhouses brings together channels including Discovery, Science, Food Network and HGTV – and could give the combined company a stronger position as pay-TV continues to migrate to the internet.
Discovery/Scripps
Sinclair Broadcast Group agrees to buy Tribune Media for $3.8 billion

This deal, if approved, would give conservative-leaning Sinclair control of 223 stations in 108 markets, including 39 of the top 50, covering 72 percent of households in the country. And it's only possible under rule changes implemented by new FCC Chairman Ajit Pai.
Sinclair/Tribune
Cineworld offers to buy Regal Cinemas for more than $3 billion

After a string of movie theater mergers last year, the sector has quieted down -- along with the box office. And while this isn’t yet a done deal -- or even an accepted offer -- British chain Cineworld made a late November bid of $23 a share for the U.S.’s No. 2 cinema chain.
Cineworld/Regal
Meredith Corp. acquires Time Inc. for $2.8 billion

The magazine megadeal is a sign of changing times in the publishing industry, with the owner of esteemed brands like Time, Fortune and Sports Illustrated selling to the parent of Better Homes and Gardens and Country Life – backed by $650 million from big-time conservative donors the Koch brothers.
Meredith/Time
Verizon acquires Straight Path Communications for $2.3 billion

Straight Path may not be a household name, but it was the subject of a bidding war between AT&T and Verizon. The company is one of the largest owners of millimeter wave spectrum, seen as key to the buildout of 5G networks, which should power much faster mobile internet -- better for video -- in the near future.
Verizon/Straight Path
Disney buys the rest of BAMTech for $1.6 billion

The Mouse House jumped into internet TV in a major way in 2017, announcing upcoming Disney and ESPN-branded streaming services and acquiring the rest of streaming tech company BAMTech to power those products.
Disney/BAMTech
Entercom buys CBS Radio for $1.5 billion

CBS Radio was intended to be spun off from its broadcast parent in an IPO, but instead it was scooped up by a competitor. The combined company, now the second largest radio business in the country, owns and operates 244 stations in 47 markets.
Entercom/CBS Radio
MGM buys the rest of Epix for $1 billion

The independent studio went all in on the pay-TV business, buying the rest of the premium cable network from Viacom and Lionsgate. And that's paid immediate dividends, as MGM's media networks division propelled it to a strong third quarter.
MGM/Epix

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Rewind 2017: Media and content consolidation continued this year

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:

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9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

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