Mode's board of directors, at Burda's urging, initiated an audit that included the expenses Arora billed to the company, according to two former executives. When Arora and Burda Media began to clash over the direction of the company in 2015, Arora's lavish lifestyle became a focal point. A penchant for fancy suits and a seemingly lavish lifestyle left an impression on the rank-and-file as well, and rumors circulated about Arora's extravagant personal expenses and his use of company property like houses in the Hamptons and in LA. He could charm a room and make you believe in whatever his vision was. Mode's revenue had reached about $100 million annually by 2015, but growth had stopped and the company was losing about $10 million a year, according to one former executive.Īll the former employees we spoke to described Arora as having a smooth, salesmanlike personality. And Arora was leading the charge, with expensive initiatives including launching a printed restaurant guide and videos featuring famous chefs. So Mode began trying to reinvent itself as a company that made its own "advertorial" content, especially videos and native ads. (The door to Mode's HQ was locked and the receptionist desk was empty the day after the shutdown.Alexei Oreskovic/Business Insider)īut as the market shifted to programmatic ad serving, in which online ads are bought and sold on automated exchanges, Mode's business began to suffer. The end of Mode, which raised over $200 million in funding and was once on track for an initial public offering, stands as one of the biggest implosions of the current tech boom and a reminder of how swiftly the good times can come to an end.
"They didn't give us sh-," said another Mode employee. John Small, the COO, simply responded: "There is no severance. Someone asked about severance, one former Mode employee recounted. People were stunned and shocked, and the management team's final Q&A session with the troops didn't help. Oh, and please hand in your laptops on the way out. Mode Media, founded in 2003 and once known as Glam Media, was shutting down. Those gathered in the office and patched in through a crackly teleconference suddenly learned that they had no more jobs, no more health insurance coverage, and no more access to the company email system.
#BOSS GLAM BOUTIQUE DRIVERS#
(Samir Arora, the cofounder and former CEO of Mode Media.Sean Gallup/Getty Images Skye Gould/Business Insider)įrom the winding freeway that links Silicon Valley with San Francisco, the giant Mode Media sign gracing the company's headquarters was a hard-to-miss proclamation alerting passing drivers to an internet success story with a rich, $1 billion valuation.īut last week, on the 11th floor of the gleaming building, the mood among employees was sour.
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