As part of the deal, the unit will restructure and lay off 100 employees in New York and Los Angeles, leaving the business with around five to 10 people, said the person, who asked to not be identified because the information is private.
"IAC, our parent company, has made the difficult decision to no longer finance us," Reich said in a statement provided to fans and Bloomberg. "While we were on the way to becoming profitable, we were nonetheless losing money -- and I myself have no money to be able to lose."
The once high-flying comedy brand, best known for its edgy sketches and satire, is the latest victim of a fast-changing digital media landscape. Sites that rely on video have struggled to get enough advertising revenue, and streaming services such as Netflix Inc. have pushed deeper into comedy in recent years.
This really bums me out. Drawfee in particular has been a constant source of entertainment for me for the last year or so, the main CH feed can still puts out some fun stuff, and I've been really interested in getting into watching their D&D Dimension 20 show, but now there won't be any more of that it sure sounds like.
I'll admit, now I feel kind of bad about never subscribing to Dropout, because I do genuinely get a good chunk of enjoyment from their stuff.