The Intercept spinning out as an independent nonprofit

Illustration: Eniola Odetunde/Axios

The Intercept, a progressive nonprofit investigative news outlet, is spinning 0ff as an independent nonprofit from its parent, First Look Media, according to a memo sent to staff obtained by Axios.

Why it matters: The company had been planning to spin off the organization for some time. Doing so, it believes, will help the outlet more easily secure outside funding to build a more sustainable long-term business model.

Catch up quick: Founded in 2014, The Intercept was funded by eBay co-founder Pierre Omidyar.

Details: First Look Institute will provide The Intercept with a significant, multiyear financial grant to help ensure a smooth transition, the company said in a statement.

Between the lines: With the transition, the company has restructured its staff and budgets to weather any future economic headwinds, according to the note from Bralow.

Be smart: First Look Institute has been moving to spin off more of its entities to make it easier for them to fund themselves.

The big picture: More companies pivoted to nonprofits in the pandemic era as a way to accept charitable donations from corporate sponsors and readers while still being able to sell ads and subscriptions.

Go deeper:

https://www.axios.com/2023/01/09/the-intercept-spinoff-independent-nonprofit