Posted on 06/28/2002 12:09:30 AM PDT by Timesink
Salon.com, which describes itself as the "Web's best newspaper", faces closure unless it can attract new funding. The site's owners have been forced to admit that their outspoken stance on political issues is alienating users and potential advertisers.
Salon.com's founder, David Talbot, has lodged an annual formal document, an "SEC 10-K", with the US Securities and Exchange Commission explaining its financial plight.
The pioneering, left-leaning website – which refused to comment on the move yesterday – recently claimed to have revealed the identity of "Deep Throat" of Watergate.
Launched in 1995, it remains one of the last and most enduring of the dot.com dreams – an online current affairs magazine with writing that would challenge, possibly even outdo, paper-based publications. Columnists for the magazine, which is read by 3.6 million people every month, include Garrison Keillor and Camille Paglia.
But it has debts of $76m (£50m), and advertising revenue has fallen so much that its moves to cut sales and marketing costs by 78 per cent last year and lay off staff have failed to solve the problem.
In April last year, its problems led it to launch a "premium" service which offered exclusive ad-free access to some content for a small fee. It was hoped the initiative would attract 50,000 subscribers. So far, though, only 39,500 have signed up.
Mr Talbot admitted the site's net revenues in the year to the end of March fell to $3.6m from $7.2m the year before – and he says that it is likely to spend more than it earns for the coming year too. Unless it can find investors in the next four months, it will close.
Even near the end, though, Mr Talbot is defiant about Salon.com's position as a source of controversy, even where it threatens the business: "Many of our websites contain, and will continue to contain, content that is politically and culturally controversial. As a result of this content, current and potential advertisers and Salon Premium subscribers may refuse to do business with us."
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Bye-bye, Prav
Bye-bye, Is-vest-i-ya
And for the rest o'ya
We'll laugh when Sa-lon di-ies
Die, b*tch.
Most people seem to disagree on this point.
I read that little tidbit from a FReeper on a thread when the stock first dove. Wish I knew who it was, I would give him/her credit...JFK
Remember Kerry??
A wannabe Freeper, but just couldn't shed the shackles of the leftist cult.
Wonder where Kerry is? A year can sure make a difference. His efforts to trash FR were in vain.
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