MarketWise has announced plans to wind down its Legacy Research arm, citing allegations of certain managers violating company policies. The operation has 104 employees, representing about 18% of MarketWise’s total workforce. According to a regulatory filing on Tuesday, the reorganization includes the closure of Legacy Research subsidiary brands and is expected to be completed in the first half of the year.
Furthermore, MarketWise reported that net income for Legacy Research was in decline throughout 2023 and totaled about $9 million for the last six months of the year. The company added that it is currently unable to estimate the cost of the reorganization and wind-down, as well as the impacts on the company’s overall results of operations. It stated that it will disclose this information after it determines estimates or a range of estimates.
The closure of Legacy Research is in response to misconduct and demonstrates a commitment to providing reliable and independent financial research to subscribers. MarketWise stated that it would make every effort to serve existing Legacy Research customers by offering similar products published by other MarketWise brands. However, this move poses uncertainty for both employees and customers alike as they await more details on how the reorganization will unfold.