Black News Channel shuts down after backer declines to fund it further

Startup aimed at serving Black audiences had drawn journalists from established media outlets

The Black News Channel, a cable news station focused on serving Black viewers, ceased operations on Friday afternoon after its billionaire backer declined to provide more funding for the startup.

Many of the news channel’s journalists left careers at established media organizations to join the start-up, in hopes of bringing news to a historically underserved audience. One of the station’s presenters, Marc Lamont Hill, told the Hollywood Reporter the station had “an incredible assignment” and would work to “fill the void” for neglected audiences at a relaunch one year ago.

The channel ceased live operations on Friday afternoon after it failed to make payroll. About 230 employees were laid off, informed they would not receive severance pay and their health benefits would end in a week, the Los Angeles Times reported.

The channel also faced a gender discrimination lawsuit, after female employees claimed their male counterparts earned more money.

“During the past few months, we have endured very painful workforce reductions at all levels of the network as we worked to achieve our financial goal of a break-even business,” Princell Hair, the station’s CEO, said in the memo, the Los Angeles Times reported.

“This has forced all of you to do more with less, and your contributions have been remarkable. Unfortunately, due to challenging market conditions and global financial pressures, we have been unable to meet our financial goals, and the timeline afforded to us has run out.”

The station was initially funded in 2019 by the Jacksonville Jaguars NFL team’s owner, Shahid Khan, who provided $50m in backing. Notably, the station was launched at a time when many cable channels are investing in streaming content to reach more audiences.