The board of administrators of Ozy, a digital media firm, stated on Tuesday that it had employed a legislation agency to analyze its “business activities” after a New York Times report raised questions in regards to the firm’s practices.
In a press release, the board stated it had employed Paul, Weiss, Rifkind, Wharton and Garrison, a big worldwide agency with headquarters in New York, to conduct the evaluate. The board additionally stated it had requested Samir Rao, the chief working officer of Ozy, “to take a leave of absence pending the results of the investigation.”
“We will continue to review the company’s leadership in the coming months,” the board stated within the assertion.
Based in 2013, Ozy has a normal curiosity information web site, publishes a raft of newsletters and produces interview packages and documentaries, a few of which seem on YouTube. The Instances’s media columnist, Ben Smith, reported that Mr. Rao had apparently impersonated a YouTube government throughout a convention name in February with Goldman Sachs bankers who had been contemplating a deal to take a position $40 million in Ozy. On the decision, the particular person posing as the manager informed the bankers that Ozy’s movies had been an amazing success on YouTube.
Ozy’s founder, Carlos Watson, informed The Instances and posted on Twitter that Mr. Rao had been going by way of a psychological well being disaster on the time of the decision. He added that Mr. Rao took a while off work afterward however had since returned to the corporate, which is predicated in Mountain View, Calif. Marc Lasry, a hedge fund supervisor, a co-owner of the Milwaukee Bucks basketball staff and chairman of the Ozy board, informed The Instances in a press release for the article revealed on Sunday that “the board was made aware of the incident, and we fully support the way it was handled.”
After the convention name, Goldman Sachs known as off its potential funding in Ozy, and Google, which owns YouTube, alerted the Federal Bureau of Investigation. (The F.B.I.’s San Francisco subject workplace wouldn’t affirm or deny the existence of an investigation.)
On Tuesday, Ozy’s board stated that Harry Hawks, a former government president and chief monetary officer of Hearst Tv, would function an interim chief monetary officer whereas the corporate’s management was below evaluate.
Information of the investigation was first reported by The Wall Street Journal.