• Sun. Mar 3rd, 2024

MarketWise Announces Plans to Wind Down Legacy Research Arm Amidst Allegations of Misconduct

ByEditor

Feb 13, 2024
MarketWise to Close its Legacy Research Business

MarketWise has announced plans to wind down its Legacy Research arm, citing allegations of certain managers violating company policies. The reorganization includes the closure of Legacy Research subsidiary brands and is expected to be completed in the first half of the year.

The operation, which has 104 employees, represents about 18% of MarketWise’s total workforce. These employees will either be offered a new role or have their positions eliminated. MarketWise stated that the closure of Legacy Research is in response to misconduct and demonstrates a commitment to providing reliable and independent financial research to subscribers. The company also noted that it would make every effort to serve existing Legacy Research customers by offering similar products published by other MarketWise brands.

MarketWise reported that net income for Legacy Research was in decline throughout 2023 and totaled about $9 million for the last six months of the year. The company added that it is currently unable to estimate the cost of the reorganization and wind-down, as well as the impacts on the company’s overall results of operations. It stated that it will disclose this information after it determines estimates or a range of estimates.

The decision to wind down its Legacy Research arm is a significant move for MarketWise as it seeks to address alleged misconduct and maintain its commitment to providing reliable and independent financial research to subscribers. As the company works to serve existing Legacy Research customers by offering similar products published by other Marketwise brands, it faces uncertainty in estimating the cost of the reorganization and wind-down, as well as potential impacts on its overall results of operations.

Leave a Reply