The firm behind an internet news site that is known for its viral content called Unilad is set to go into administration. It will most likely put hundreds of jobs at risk.
A judge recommended the said move after a court hearing that determined that Bentley Harrington, the parent company of the website, had debts running up to £6 million.
The co-founder of Unilad, Alex Partridge, echoed the call. Patridge said that he was owed £5 million by Bentley Harrington, which owes HMRC £1.5 million.
The lawyers that represent the media company agreed that the administration should go ahead. They suggested that some investors have already shown their interest in acquiring some parts of the business. On it is broken apart and sold, the amount that is paid for the various Facebook pages of Unilad– the largest of which has 39 million ‘likes’ — will become a test of social media platform valuations.
Unilad was the fourth-largest publisher of the social media giant. It rose to fame for its engagement-friendly content. Many of their content focused on student life and the intangible concept of “banter.”
Its content has significantly diversified since then, and it currently covers a wide range of topics, with a concentration on “trending” and “shareable” topics.
Just like several new media platforms, including LADbible, its rival – which has not reported any financial issues – Unilad depended on content that drew audience engagement – in particular, through comments and reactions – to perform when in the algorithm which determines what the users see. Recently, Facebook has announced that it is modifying its systems so that its users see higher-quality videos, placing various business models of platforms such as Unilad at risk.