Scribe Media, an Austin book writing and publishing startup that has all but collapsed, may soon have a new owner.
San Francisco-based Enduring Ventures said it has signed a letter of intent to purchase the company. Meanwhile, Enduring Ventures founder Sieva Kozinsky said in a June 21 LinkedIn post that he plans to take over as interim CEO of the business created from the remains of Scribe, which will be operated by Enduring Ventures.
In the post, which came from Scribe’s account, Kozinsky said the new business will be "designed to continue serving Scribe's existing customers."
But the deal has not closed as Enduring Ventures works on due diligence and financing.
"A lot can happen between where we are today and completing the transaction," Kozinsky wrote in the post. "We still need approval from the SBA/Bank and support from authors and shareholders for this to work."
Scribe Media, founded in 2014 as Book in a Box by author Tucker Max and entrepreneur Zach Obront, became a well-known business, making headlines for its radically transparent culture. Its team worked with prospective authors, often ghostwriting much of the content, and then helped publish and market their work. It published fitness influencer David Goggins' book "Can't Hurt Me," in 2020, as well as "Never Finished" in 2022. Scribe worked with Alex Gurevich on "The Trades of March 2020," which became a Wall Street Journal best-seller, and with Tiffany Haddish on her New York Times bestseller "The Last Black Unicorn."
Enduring Ventures' proposal to save Scribe from complete failure comes after the company in May told the Texas Workforce Commission it had "shut down its operations" and laid off 90 employees. Shortly after that, JeVon McCormick resigned as CEO and apologized on social media to many former employees left wondering what had happened and clients seeking refunds.
Along with the potential acquisition announcement, Kozinsky said 10 more Scribe employees have been laid off. It’s unclear what remains of the company currently.
"Unfortunately, we don't have a magic wand to solve all the problems," he wrote. "Scribe's liabilities exceed its assets by a significant margin."
Kozinksy is asking Scribe’s clients — prospective authors who contracted with Scribe to help them write a book — to be patient, even though many have already made large payments to the company with little or nothing to show for it.
Kozinsky asked authors to "forget any commitments that were made to you in the last two months."
"Those commitments were likely made with good intent but without leadership," he wrote. "I cannot stand by commitments I didn't make to you."
Nonetheless, he pledged that a resurrected Scribe would provide clear and regular communication. But it appears even some of those early commitments could be delayed significantly.
"We will need to create a new plan going forward because our small team cannot handle the volume of books in progress. We will tailor a plan for each author and reach out to you directly to discuss it,” Kozinsky wrote. "I can't promise an effortless journey as we rebuild this business."
Enduring Ventures was founded by Kozinsky and Xavier Helgesen in 2019. Its website says it is a long-term holding company and invests in businesses in any sector with at least $500,000 in earnings, 50% gross margins and 20% or greater operating margins. It appears to have five companies in its portfolio, including Dolphin Pools, Rango Brands and UpCounsel.
While the firm's planned acquisition has the potential to save some remnant of Scribe, it faces significant challenges.
"If you need to direct your anger at someone, direct it at me," Kozinsky wrote. "I didn't cause the issues, but perhaps I can help solve them with enough time."
