Digital publisher Mic Network Inc. has agreed to sell itself to women-focused publisher Bustle Digital Group for about $5 million, according to a person familiar with the matter—a fraction of Mic’s valuation less than two years ago.

Mic laid off almost all of its employees ahead of the sale, another person familiar with the matter said. Mic co-founder Chris Altchek informed employees of the layoffs during an all-hands meeting Thursday, the person said.

Bustle...