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Summary:

Heavy, the online video firm aimed at young male audiences, is laying off about 25 people out of a staff of 105, we have learned, and compan…

Heavy, the online video firm aimed at young male audiences, is laying off about 25 people out of a staff of 105, we have learned, and company co-CEO Simon Assaad has confirmed it to us. The news comes as the company is spinning off its online video ad network division Husky Media into a separate company. Assaad told me that the layoffs were a result of this spinoff, where the company realized some of the projects they were working on were not needed…most of the layoffs are in the technical and advertising operations side. The company is also closing down the BurlySports.com website, which was the companion site to its video show The Burly Sports Show..the show was just picked up by CBSSports.com, with with ad overlay technology developed and supplied by Husky. Assaad said in this super-distributed video world, the need for a destination site for a video show which is mainly syndicated doesn’t make sense.

The details of the Husky spinoff haven’t been disclosed fully: no word on the new management for the spinoff (for now, the current management is looking over both companies and are in the same offices in New York City), or the funding, but the company is looking to close funding for Husky soon, he told me. The details of Husky and its services are explained well in this ClickZ story.

The main Heavy company is profitable with this reorg, Assaad said, and revenues grew 60 percent in the last year. Heavy itself does not need a new round, he said.

We have heard rumors about Heavy’s sale on and off over the last few years…wondering with this spinoff, if the Heavy side of the business, with profitability and established business line, becomes more attractive to buyers….

  1. Wow! really BAD sign!

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  2. fractal94301 Friday, June 6, 2008

    the sun valley crowd soured on this outfit last year. no fundamentals, scarce resource planning, and an inability to staff out core functional areas. a blindingly bright idea which the sun has set on.

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  3. Agree. Acquisition window closed shortly after the last round. Reinvention from garbatrage play into distributed video app highly unlikely….

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  4. Another round of investment for this management team would be reckless. I see a bridge loan buying 9 months before liquidation. Period.

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  5. signaltonoise Friday, June 6, 2008

    looks to me that these guys have run out of equity to sell in heavy.com and are stripping the old company for parts and rolling a "new" company off the lot. borderline criminal. closing funding soon? sure…. this is michael milken stuff.

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  6. How much has Heavy raised? I thought it was around $80 million in total.

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