9 months ago
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The CoinDesk takeover by Bullish has resulted in a few changes, including the departure of the CEO among other key staff.
Global crypto exchange Bullish struck a deal to acquire online crypto media CoinDesk for a price between $70 million and $80 million. CoinDesk is a popular crypto news platform owned by parent company Digital Currency Group (DCG), whose subsidiaries include crypto exchange Luno and asset management platform Grayscale Investments.
Bullish Save CoinDesk from Financial Problems
Coinspeaker first reported the sale last November after both parties published a press release confirming the acquisition. Although CoinDesk had suffered some financial setback, Bullish announced that it would now fund the publication without impacting the company’s independence:
“Bullish will immediately inject capital into several of CoinDesk’s most exciting growth initiatives which will power the launch of new services, events and products. We also want to express our unwavering support for CoinDesk’s commitment to journalistic independence.”
CoinDesk’s woes began when the publication revealed some financial irregularities noticed on trading firm Alameda Research’s balance sheet. The news story considerably affected the crypto sector and was followed by a heavy bear market that significantly impacted DCG. In November 2022, reports suggested that CoinDesk received an offer worth $300 million from a potential buyer. The company’s list of potential buyers included family offices, private equity firms, and even rivals like Blockworks. Binance also mulled buying CoinDesk through CoinMarketCap at one point. As its financial situation worsened, CoinDesk fired 45% of its editorial staff (reportedly 20 employees) to keep the company financially stable. According to a memo from then-CEO Kevin Worth, the layoffs primarily affected the company’s media team.
A CoinDesk report from last week confirmed that Bullish has now replaced Worth with Sara Stratoberdha, the exchange’s previous Head of Business Development.
Bullish’s confirmation that CoinDesk will continue to run independently furthers the publication’s seemingly complex relationship with its owners. Even though CoinDesk may have inadvertently caused DCG’s problems, the publication continued reporting stories about DCG owner Barry Silbert’s issues.
CoinDesk Management Team Restructured
The appointment of Stratoberdha as the new CEO is one of a few changes made to CoinDesk’s structure. The takeover also forced several executives out, including Chief Operating Officer and President of Medial Elinor Hirschhorn, and Executive Director of Global Strategy Emily Parker. Vice President of Engineering John DeGuenther also departed, while Chief Content Officer Michael Casey no longer works full-time but might remain in another capacity. Interestingly, Bullish retained Editor-in-Chief Kevin Reynolds.
In a memo, Bullish CEO Tom Farley explained that the restructuring was needed to organize the company’s media, indices, and events business into a simpler form. In a statement to CoinDesk, Farley noted:
“Kevin and the leadership team oversaw the evolution of CoinDesk into a leading global media company, effected the sale to Bullish, and successfully integrated the two companies. We thank them and wish them well.”
Bullish reportedly held a town hall with CoinDesk staff to field questions. Stratoberdha answered staff questions, providing insight into the company’s plan going forward. For most staff, the biggest concern is whether or not CoinDesk will be allowed to maintain its independence.
