Sports Illustrated's Lost Ad Revenue, Layoffs Hit Maven's Stock Hard

TheMaven Inc MVEN shares traded sharply lower on Wednesday on news the company will lay off 9% of its staff and initiate cost-containment measures. The company is the publisher of Sports Illustrated and TheStreet.

TheMaven announced late Monday a wide-ranging cost-containment plan to get ahead of the economic tumult triggered by the novel coronavirus pandemic and ensure the ongoing strength of the company. The company expects to take a $30 million hit in revenue in 2020 due to lost ad revenue.

TheMaven will cut 31 people, which is 9% of the workforce, and a 30% cut in senior management compensation.

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"SI was already rocked by a 50 percent staff cut in October after Maven took over its operations from Authentic Brands Group, which technically retains ownership of SI while licensing the media to Maven," according to The New York Post.

TheMaven, which has a market cap of about $20 million, closed down 31.17% at 53 cents. The stock has a 52-week high of $1 and a 52-week low of 31 cents.

Photo courtesy of Sports Illustrated.