Bullish’s acquisition of CoinDesk has led to some changes, including the departure of the CEO and other key personnel. “CoinDesk will remain an independent subsidiary of Bullish and Sara is committed to maintaining CoinDesk’s independence and journalistic integrity,” a CoinDesk spokesperson said.
Global cryptocurrency exchange Bullish has reached an agreement to acquire online crypto outlet CoinDesk for a price between $70 million and $80 million.
CoinDesk is a popular cryptocurrency news platform owned by parent company Digital Currency Group (DCG), whose subsidiaries include cryptocurrency exchange Luno and asset management platform Grayscale Investments.
Bulls Save CoinDesk from Financial Trouble
Coinspeaker first reported the sale last November after both parties issued a press release confirming the acquisition. Although CoinDesk had suffered some financial setback, Bullish announced that it would now fund the publication without affecting 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 problems began when the publication revealed some financial irregularities observed in the balance sheet of the trading company Alameda Research. The news greatly affected the crypto sector and was followed by a strong bear market that significantly affected DCG. Although CoinDesk may have inadvertently compromised DCG, the media outlet continued to report stories about DCG owner Barry Silbert’s problems.
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 considered purchasing CoinDesk through CoinMarketCap at one point.
As its financial situation worsened, CoinDesk laid off 45% of its editorial staff (reportedly 20 employees) to maintain the company’s financial stability. According to a memo from then-CEO Kevin Worth, the layoffs primarily affected the company’s media team.
A report from CoinDesk last week confirmed that Bullish has now replaced Worth with Sara Stratoberdha, the exchange’s former head of business development. Bullish’s confirmation that CoinDesk will continue to operate independently furthers the publication’s seemingly complex relationship with its owners.
“Sara and the CoinDesk leadership team are excited about the opportunity to invest in and grow CoinDesk Media, Events and Indices,” according to the report.
CoinDesk Management Team Restructured
Stratoberdha’s appointment as the new CEO is one of the few changes made to CoinDesk’s structure. The acquisition also forced several executives to resign, including Medial Chief Operating Officer and President Elinor Hirschhorn and Chief Global Strategy Officer Emily Parker.
Vice president of engineering John DeGuenther also left, while chief content officer Michael Casey is no longer full-time but could remain in another role. Interestingly, Bullish hired editor-in-chief Kevin Reynolds.
In a memo, Bullish CEO Tom Farley explained that the restructuring was necessary to organize the company’s media, indexes and events business in a more streamlined way. In a statement to CoinDesk, Farley noted the following:
“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 public meeting with CoinDesk staff to answer questions. Stratoberdha answered questions from staff and provided insight into the company’s plan for the future. For most staff, the biggest concern is whether CoinDesk will be allowed to maintain its independence.
By Audy Castaneda
