Media Matters, the leftist nonprofit notorious for its scorched-earth campaigns against conservative media, is reportedly in a state of crisis, reeling from a series of lawsuits, federal investigations, mass layoffs, infighting, and donor panic. The New York Times now confirms what many on the right have suspected for months: the group’s legal and financial foundation is cracking, and its future is in jeopardy.
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Despite claiming it has “no plans to close,” Media Matters has quietly cut back its attacks, slashed staff, and even floated shuttering operations entirely, according to interviews and internal documents obtained by the Times.
The group has racked up over $15 million in legal bills in less than two years, alienated donors, and now reportedly faces a Federal Trade Commission (FTC) investigation — revealed through documents obtained by Reuters and not yet publicly confirmed by the commission — into whether it colluded with other liberal organizations to suppress advertising on Musk’s platform.
Breitbart News has reported extensively on the group’s unraveling, including a federal judge’s decision to allow Musk’s lawsuit to proceed to trial in April 2025. The lawsuit accuses Media Matters of deploying “coordinated, inauthentic behavior” to mislead advertisers.
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The group’s president, Angelo Carusone, has blamed the Trump administration for using federal power to “silence critics.” In May, the FTC issued a sweeping investigative demand for documents related to Media Matters’ communications with other liberal watchdog and advertising groups, echoing concerns raised by Elon Musk that such entities coordinated advertiser boycotts under the guise of “brand safety.”
Once a powerhouse in Democrat-aligned media warfare, bolstered by billionaire donors like George Soros and nonprofit structures that shield donor identities, Media Matters now finds itself hemorrhaging cash, morale, and relevance. Even longtime allies have reportedly distanced themselves, and one top donor has allegedly urged the group to shut down altogether.
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As the group scrambles to fend off Musk’s litigation, FTC scrutiny, and Republican state investigations, insiders describe a workplace grappling with low morale, security threats, and severe financial strain. According to a Media Matters lawsuit cited by The New York Times, many reporters, writers, and researchers have “pared back their investigative journalism,” particularly on topics related to the FTC or its investigation, due to fear of potential repercussions.
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Meanwhile, President Trump’s allies continue to investigate whether Media Matters violated consumer protection laws by raising funds under false pretenses, part of a broader crackdown on what many in the conservative movement see as a speech cartel designed to suppress dissent.