Mic, a digital news media startup, has been sold to Bustle Digital Group for $5 million.
The publisher is also laying off most of its 100 member staff. Only a fraction of those will be staying with Mic after the sale.
Mic’s new owner develops content for millennial women. As an independent publisher, it tried to establish itself as a digital news site for millennials, but stiff competition and increasing costs hindered its growth. It was one of many news sites that focused on video to report stories, which to date, has had mixed success.
Mic’s future was further clouded when its content partner, Facebook, cancelled a video series with Mic, cutting into its bottom line and repelling potential investors.
Mic was founded by Chris Altchek and Jake Horowitz in 2011. Previously known as PolicyMic, it had as many as 19 million unique readers. It raised $52 million last year from investors such as Lightspeed Venture Partners and Advancit Captial.