The Al Jazeera America shut down reportedly was costing the company millions. Apart from the impending job cuts, they are also apparently buying out some lease that has yet to expire by the time the network closes.
As reported by the Commercial Observer, the network's New York office at 250 West 55th Street apparently had a rent contract up to 2035 and they had to pay big bucks to get it terminated.
"In consideration for the termination of the lease, the tenant paid the company approximately $45 million, which will be recognized in the first quarter of 2016," a Boston Properties report said as cited by the source above.
The Boston Properties as well as Al Jazeera America has yet to comment about the rent termination due to the upcoming shut down. The firm handling the lease of the place, meanwhile, insisted the company never used the place.
According to The Real Deal though, they confirmed from industry analysts that the Qatar-based media giant was indeed renting the place.
The sudden closure of the media network in the US was announced just last month. As posted on the company's website, it was mentioned that the network will cease operations come April.
"While Al Jazeera America built a loyal audience across the US and increasingly was recognized as an important new voice in television news, the economic landscape of the media environment has driven its strategic decision to wind down its operations and conclude its service," the press release stated.
While sustainability seemed part of the reason behind the Al Jazeera America shut down, there were reports as well that low oil prices also had a hand in it.
"Al Jazeera Media Network had to cut, and instead of making it across the board or anywhere else, they decided to chop Al Jazeera America," a source told CNN Money in January.
