Salon Down to Last $1.5M in Cash

Associated Press ^ | Thursday, June 27, 2002

[Slip18]

Your imagery is fantastic! I can see it all now. And I'm not Cleo . . .

[Constitution Day]

That is much better than the Medusa-like Helen Thomas picture you flung at me earlier today.

Thanks.

[Dog Gone]

That was rather rude of me.

[Lonesome in Massachussets]

I thought it said SALOON, and I thought I had found where my money had gone.

Uncle George left it in a newspaper and that evil old man Potter's got it.

[Consort]

[APBaer]

Hey Lonesome,
Be a good fellow and go down to the saloon and get my $1.5million back.

And you know, you might just earn your wings.
If Clarence could do it, you can do it too.

[Constitution Day]

That was rather rude of me

It's okay, I'm over it now.

.

My vision has returned.

[blackbart1]

Love your dream GD. LOL

[Lonesome in Massachussets]

Jump off the damn bridge, already.

[AntiScumbag]

let's see, according to their 3/31/02 10-k, they whacked 89 employees and cut the pay of everyone who was left by 15%, cut down on freelance purchases, and they feel that EVERYTHING has been cut to the bone (they state it repeatedly in the management discussion)

cash revenue for the year ended 3/31/02 included (in millions) advertising 1.9, subscriptions 1.2, website management software .2, licensing .2, and interest .1, total 3.6

cash expenses for the year ended 3/31/02 included (in millions) production/content 5.0, sales/marketing 1.9 (2.7 less non-cash advertising of .8), research/development .7,
general/admin 1.7 (1.9 less one-time bad debt of .2), total 9.3

looking forward, they stopped selling their software, interest income will fall to near zero, and assuming they maintain advertising revenue (not likely) and maintain their 30 odd thousand subscriptions (about the same number they had about 9 months ago), a very optimistic estimate of 12 month revenue might be about 3.3 million

cash expenses, barring further lay-offs, will probably still be about 9.3 million

which leaves them still bleeding cash at the rate of about 6 million per year

now, the 10-k was as of 3 months ago, so their 1.5 million in cash has probably already been about vaporized

so, unless some fool vc immediately pours more money down their rat-hole, or they can find about 500 net new subscribers EACH AND EVERY DAY (saturdays, sundays and holidays included), or they dump a massive chunk of the remaining employees and totally impair their content and any hope of even retaining the current subscribers, the amount of time we'll have to kick salon around can be measured in weeks, perhaps days

i'll guess that this turd stops swirling and finally goes down the drain sometime in july

[Nam Vet]

"I'll guess that THIS TURD STOPS SWIRLING and finally goes down the drain sometime in july"

AAh, the poetry and images called up by Freepers never ceases to amaze me.

Nam Vet

[xsmommy]

hey lone, imagine miss rika setting up the classroom in the.... SALON??? LOL!

[palmer]

I wonder if some lefty millionaire will step in

The venture funds behind salon were pretty much the same Californians who donate to the democrats and they sold their shares a long time ago.