MarketWise to Wind Down Legacy Research Arm Amid Alleged Policy Violations
MarketWise, a prominent financial research firm, has revealed plans to wind down its Legacy Research arm following alleged policy violations by certain managers, as stated in a regulatory filing. This reorganization, which entails the closure of Legacy Research subsidiary brands, is expected to be completed by the first half of this year.
The move to wind down Legacy Research will have significant implications, as the operation currently employs 104 individuals, making up approximately 18% of MarketWise’s total workforce. These employees will be given the option of being offered a new role within the company or having their positions eliminated altogether.
MarketWise has emphasized that this decision to close down Legacy Research stems from identified misconduct, demonstrating the firm’s firm commitment to providing subscribers with reliable and independent financial research. MarketWise has further announced its intentions to ensure continued support for existing Legacy Research customers by offering them similar products published by other MarketWise brands.
The financial status of Legacy Research reveals a declining trend in net income throughout 2023, with a total of approximately $9 million generated in the last six months of the year. However, at present, MarketWise is unable to determine the precise cost of this reorganization and wind-down process, as well as its overall impact on the company’s operations. MarketWise has declared its intention to disclose these figures once estimates or a range of estimates have been established.
As MarketWise initiates the winding down of its Legacy Research arm, the company diligently works to ensure that its commitment to reliable and independent financial research remains unwavering, while also catering to the needs of its valued subscribers.
Analyst comment
Positive news: MarketWise is taking action to address alleged policy violations and ensure the reliability of its financial research by winding down its Legacy Research arm. The company is offering affected employees new roles and will provide existing customers with similar products from other MarketWise brands. The financial impact is uncertain, but MarketWise is committed to transparency in disclosing the cost and overall impact. The market may view this as a positive step towards maintaining trust and integrity in the company’s services.
