Online comment platform OpenWeb has entered insolvency proceedings in its native Israel, following the ongoing dispute with its primary lender Mars Growth Capital over approximately $20 million in outstanding debt and the collapse of a proposed restructuring plan.
The Tel Aviv District Court ruled last week that the business and ordered the appointment of a temporary receiver following a request from Mars Growth Capital.
OpenWeb, founded in 2012, allows publishers to host reader discussions, forums and interactive features directly on their websites, rather than sending audiences to third-party social platforms such as Reddit or Facebook.
By 2022, it was valued at $1.5 billion and had spent hundreds of millions on acquisitions. It worked with more than 1,000 publishers and claimed it reached more than 100 million users per month. Its investors included The New York Times, Dentsu and Samsung Next.
The development could have implications for publishers and advertisers using OpenWeb’s technology, which powers comment sections and online communities for more than 5,000 major media publishers including the likes of News Corp, Yahoo!, Forbes and The Wall Street Journal.
How did OpenWeb end up here?
In January 2025, OpenWeb secured a credit facility of up to US$30 million (A$43 million) from Mars, drawing down approximately US$24.4 million to fund its operations. The outstanding debt has since become the centre of a legal battle over the company’s financial position and its efforts to secure a buyer or restructure the business.
According to court filings cited by Israeli publication Calcalistech, OpenWeb generated just US$121.5 million in revenue in 2025, falling short of a projected US$193.7 million, while recording a significant earnings loss of US$28.4 million.
Mars also alleged that OpenWeb failed to disclose the termination of its partnership with Microsoft in a timely manner.
The partnership reportedly ended following allegations of invalid or inauthentic traffic, which OpenWeb has disputed. Mars cited the company’s financial performance and the Microsoft development as grounds for demanding immediate repayment of the outstanding debt.
OpenWeb, meanwhile, argued that it had been working towards a restructuring and that the lender’s actions undermined its efforts to secure the funding needed to remain operational.
Then, in September, the company presented a restructuring plan that included cutting approximately 55 per cent of its workforce, closing unprofitable business units and seeking between US$14-19 million in new capital from shareholders, including major investors Insight Partners and Georgian.
OpenWeb said the recovery plan was derailed after Mars moved to seize approximately US$7.3 million from its overseas bank accounts, worsening its cash-flow position and disrupting the proposed capital injection. Mars disputed the company’s account of events, arguing that OpenWeb delayed the restructuring process and failed to secure the necessary funding.
The dispute has now progressed beyond negotiations, with the court declaring OpenWeb insolvent and ordering the appointment of a temporary trustee to oversee the company.
While the appointment does not necessarily mean OpenWeb’s operations will cease immediately, it does raise questions about the company’s future, its ability to meet obligations to customers and suppliers, and the continuity of its advertising and publisher technology services.
And it’s not the first back pedal for the company, with the removal of co-founder and then-CEO Nadav Shoval from the board in September 2024.
B&T has contacted OpenWeb for comment.
