Media Matters, a left-wing media watchdog, is reportedly facing an existential crisis as it drowns in government investigations, legal expenses from a defamation case and loss of donors, according to The New York Times.
Media Matters’s future looks so dire since layoffs were reported in May that some involved with the organization have contemplated declaring bankruptcy or shutting down entirely in recent months, the NYT reported Friday, citing internal documents and 11 sources familiar with the situation. The Democrat-aligned group purports to monitor and combat “conservative misinformation in the U.S. media” and is under investigation by the Trump administration’s Federal Trade Commission (FTC) over allegations that it illegally colluded with advertisers to stifle conservative viewpoints.
The group, which has taken money from left-wing philanthropists such as George Soros, is reportedly bleeding donors and funders who fear some form of retaliation as it increasingly comes under fire, The New York Times reported. Media Matters also lost around $2 million fending off investigations by Republican state attorneys general over claims that it manipulated data to smear Elon Musk’s X, according to the outlet.
The organization’s legal expenses from battling conservatives have reportedly topped $15 million over the past 20 months, according to the NYT. Declining morale and disagreements among staff have reportedly added to the difficulties.
The inner turmoil even resulted in a dispute between Media Matters staff and the law firm of Democratic election lawyer Marc Elias, Elias Law Group, over legal bills stemming from an ongoing defamation lawsuit filed by X, the NYT reported.
Elias Law Group reportedly notified Media Matters via email in February that it owed $4 million for litigation in response to the suit, which accuses Media Matters of defaming Musk’s social media platform with a 2023 report claiming that X placed ads next to antisemitic content, according to the NYT
“We understand this case has been and remains very difficult for everyone involved, as was Musk’s intention when he brought it,” an Elias Law Group staffer wrote to two Media Matters President Angelo Carusone and its lead fundraiser, Mary Pat Bonner, The New York Times reported. The firm reportedly offered to waive around half of the unpaid expenses if Media Matters paid $2.25 million within about a week.
“You must be kidding!!” Bonner replied, according to the outlet. “This is how you treat people who have been clients for 16 years and are friends?”
Negotiations between X and Media Matters have thus far been unsuccessful, with Musk’s company reportedly trying to pressure the media watchdog to accept a deal that would have included shutting down, according to The New York Times.
“Unlike some major media entities that have recently caved to pressure, we understand that this battle is larger than us,” Carusone told The New York Times. “That’s why we continue to carry out our mission and fight in court.”
Media Matters, Elias Law Group and X did not respond to the DCNF’s requests for comment.
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