Posted on 07/01/2002 12:10:58 PM PDT by Timesink
Posted Friday, June 28, 2002
Salon CEO Michael O'Donnell's statement re press reports on the Webzine's finances.
After filing our annual 10K report on Wednesday, which includes language from our auditors about our prospects as a "going concern," our friends in the press have taken their knives out again, predicting Salon's demise. Similar language appeared in our previous annual report a year ago; but we're still here. A Reuters reporter (who has made so many mistakes covering Salon over the years we've lost count) actually made up a quote from us, saying "the company said the end could be near." She never talked to us and of course "the company" said nothing of the kind.
Press accounts have also confused a report of Salon's $76 million accumulated losses since our inception in 1995 to mean that Salon is that much in debt. This is incorrect. We have actually invested approximately $55 million in cash since we started Salon in 1995, almost seven years ago; this is not debt. New magazine or media property launches often incur losses for some period of time during their startup phases.
The fact is, Salon has been a survivor and that bothers many people in the media -- especially those who wish we'd just fade away or collapse all together. For example, the San Francisco Chronicle's editorial page recently considered Salon's "Deep Throat" e-book such a threat to the civic well-being that it took time out to warn readers not to buy it.
Yes, we are a small company in tough times, and we're continually trying to raise money or lining up alternative financing to help us as we try to reach profitability. Our business staff works overtime trying to boost sales, and we all work hard to keep costs in line. But we have a real business, real revenues, millions of readers and a plan to get profitable. And we have supportive investors. So while the press whips itself up into a lather once again about Salon's annual report, we're just staying focused on continuing to produce the best Web site we can.
......
"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This comment contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein. The forward-looking statements contained herein include statements about future financial and operating results of Salon. Factors that could cause actual results to differ materially from those described herein include: the economic environment of the media industry; the difficulty in securing on-line advertising; growth in subscription revenue programs; uncertain revenue sources and the general economic environment. More detailed information about these factors is set forth in the reports filed by Salon with the Securities and Exchange Commission. Salon is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Wow, for the price of a mediocre cigar, I could get a hundred shares. I'd rather light up. ha ha
If they are, how? Why? And for how long? I love seeing leftist money disappearing into a sink hole with no known result. Once salon draws its last breath, for real, where will the leftists waste their money?
One more proof of the old statement from Ben Franklin's Poor Richard's Almanac, "A fool and his money are soon parted."
Congressman Billybob
Click for: "Stupid is as Stupid Does, Even Among Federal Judges."
THE CONTROVERSIAL CONTENT OF SALON'S WEBSITES MAY LIMIT ITS REVENUES 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. Salon's outspoken stance on political issues has and may continue to result in negative reactions from some users, commentators and other media outlets.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.