Rolling Stone Editor and Adobe Executive Put $800,000 Into Salon Web Site (Bad Money After Bad!)

The New York Times ^ | January 15, 2004 | David Carr

[Timesink]

January 15, 2004

Rolling Stone Editor and Adobe Executive Put $800,000 Into Salon Web Site

By DAVID CARR

ann Wenner, the founder and editor of Rolling Stone magazine and chairman of Wenner Media, said yesterday that he would invest $200,000 in the Salon Media Group, the financially struggling Internet media company, and join its board.

Also yesterday, Salon announced that John E. Warnock, co-chairman of Adobe Systems and a longtime financial backer, would invest an additional $600,000 in the Web company.

As part of the alliance with Mr. Wenner, Salon and Rolling Stone, each known for liberal political leanings, will collaborate on a series of articles about the presidential election. "I really like what they have been doing over the years," Mr. Wenner said. "I have been impressed with their journalistic drive and energy. And given that we are gearing up our political coverage, we thought they would be a good partner."

David Talbot, the site's chief executive and editor in chief, said, "This is all part of Salon ramping up its political coverage in a major way for the coming election." In addition to the collaborations with Rolling Stone, Salon has hired Sidney Blumenthal, a former aide to President Bill Clinton, as a consultant and columnist.

This week Salon will begin offering a political commentary site, a so-called blog, called the War Room. Mr. Talbot also said that Dave Eggers would serialize his next book - a political satire - on the site beginning this month.

Since Salon began in 1995, the company, based in San Francisco, has received much news media attention for its aggressive political coverage and cultural commentary, but has struggled to find a business model to support its journalistic efforts. The site, which went public in 1999, has yet to make a profit and has an accumulated deficit of more than $80 million. For the six months that ended Sept. 30, Salon had a net loss of $2.5 million on revenue of $2.1 million.

The company has stayed alive because of cash infusions from wealthy supporters who are intent on maintaining Salon's journalistic presence on the Web.

Mr. Wenner, asked why he was investing in a media property that had not shown much promise of turning into a business, first joked.

"The real truth is that everybody was cashing in on this dot-com stuff, and I thought this was my big opportunity," he said. "Really, I wanted to show that I was serious and committed to the partnership, and I think participating as an investor and a board member was a good way to demonstrate that."

The site has 73,000 subscribers to its premium service, which allows visitors, for a fee, to view articles without sitting through banner and pop-up ads, and is aggressively soliciting subscribers through incentives, including a two-for-one subscription offer that features free magazines and free MP3 music downloads.

Mr. Talbot said that the alliance with Rolling Stone was a natural step for Salon, which is eight years old.

"Even though we are an Internet company, we realize that print is not dead," he said. "Rolling Stone has a lot of readers who we are interested in reaching."

[Timesink]

John E. Warnock, co-chairman of Adobe Systems and a longtime financial backer...

There's the understatement of the week.

[Timesink]

Schadenfreude

This is the New York Times Salon.com Schadenfreude Ping List. Freepmail me to be added or dropped.

---

This is the Mainstream Media Shenanigans ping list. Please freepmail me to be added or dropped.
Please note this is a medium- to high-volume list.
Please feel free to ping me if you come across a thread you would think worthy of this ping list. I can't catch them all!

To find all articles tagged or indexed using Salon Deathwatch, click below:
	click here >>>	Salon Deathwatch	<<< click here
(To view all FR Bump Lists, click here)

[Prime Choice]

Well, considering Abode's knife-in-the-back mods to their own software packages followed up by support to a turbo-Leftist site, I'd say I'll never purchase another piece of Adobe software.

Stupid b@s+@rds. Pink right down to their underwear.

[Hank Rearden]

Looks like Salon will stagger through the election, then fall over dead.

[martin_fierro]

Obligatory SALN.OB chart

[Dacus943]

"Rolling Stone Editor and Adobe Executive Put $800,000 Into Salon Web Site (Bad Money After Bad!)"

Let us all hope that they are just a generous in their giving to the Dean\Clark Election efforts.

[Drango]

I love it when liberals throw money down a rat hole.

[FreedomPoster]

Me, too. Loved the story yesterday about the radio network that's finally really starting up, with Al Franken as one of the main "talents". I went to the bookstore last night, and noted that his latest book is off the "new release" shelves/tables, and in the humor section, buried way in the back of the store.

[FreedomPoster]

Here's the SALN chart; it's the one I like to look at ;-)

[GOPJ]

Interpretation: PR type coverage from an adoring liberal press mixed with liberal pity cash couldn't buy enough readers to keep this shipwreck afloat.

Since Salon began in 1995, the company, based in San Francisco, has received much news media attention for its aggressive political coverage and cultural commentary, but has struggled to find a business model to support its journalistic efforts.

[gaspar]

One would think that Warnock would pay attention to his own corporation. In the tech boom of the last 9 months Adobe has hardly reacted. ADBE: 4/1903 = $36.15, 1/14/1904 = 37.15.

[Drango]

has yet to make a profit and has an accumulated deficit of more than $80 million.

Let's see (furiously punches calculator). They've been in business 8 years and are $80 million in debt. (punch, calculate, punch) According to my public school education, that's $10 million debt a year. All this for 73,000 subscribers? Such a deal.

[MizzouTigerRepublican]

Seems like they have a hard time running the old check book out there. I love it when those communist stinky hippies waste their money. Just less money they have to spend on Birkenstocks.

[FierceDraka]

Well, considering Abode's knife-in-the-back mods to their own software packages followed up by support to a turbo-Leftist site, I'd say I'll never purchase another piece of Adobe software.

Ahoy there, me hearties! I'm sure thar's a scurvy crew o' pirates who would be happy ta supply ye with the finest goods the foul communist Adobe hath to offer!

[COEXERJ145]

Tall about pouring money into a bottomless pit.

[Grampa Dave]

Good news! Now if $oreA$$ and the DNC would just match their funds, it would even be better news.

[GalaxieFiveHundred]

"I really like what they have been doing over the years," Mr. Wenner said.

[Grampa Dave]

Wouldn't it be nice if Free Republic had enough money to buy Salon, then fire all of the rats, perverts, and anti Americans?

Then make it another tool/weapon for our side.

[Wheee The People]

Wow, I've not been to the Salon site in years...They're still in business?

[arm958]

...And I just spent a bunch of money on Photoshop and Pagemaker, arghh!!