Salon.com Sued by Landlord-Forfeits $400K Deposit for Decreased Rent, to Avoid Eviction (snicker)

National Journal and the Los Angeles Times ^ | July 1, 2003 | Chuck Todd

[ewing]

PRESS PASS: Salon Behind on its rent

Salon.com disclosed June 30 that it has renegiotionated its headquarters lease after getting sued for falling behind on its rent.

The company struck a deal with its landlord late last week that will reduce its monthly rent from $70,000.00 to $12,000.00 according to documents filed with the Securities and Exchange Commission.

Salon will also forfeit a $400,000.00 deposit and rent just one floor of the offices instead of the two floors covered by the pervious lease.

[ewing]

Schadenfraude alert!

[ItsOurTimeNow]

Didn't they just get like $800,000 in VC funding recently?

Further proof that there's no money in lies.

[ewing]

Im suprised they hadnt thought of looting the 400k deposit before..

[ken5050]

WE need a stock chart....

[staytrue]

Possession is 9/10ths of the law. They did not possess the 400k to loot it.

[Cultural Jihad]

WE need a stock chart....

Weren't they evicted (er, delisted) from the stock exchange a while ago?

[finnman69]

What is it with LW groups not paying their bills? Al Sharpton has done the same thing.

[Hodar]

I loved hearing the idea of various libs wanting to get a few hundred million in backing to open a Liberal News channel (as if they don't have enough already). One way to remove Liberals from power is to part them from their money. Salon was an excellent start.

[Mr. K]

when this stock hits a penny Roger Ailes should buy the whole place- the free advertising this place gets from the liberal presstitutes is worth millions, and is WAY out of line in comparison to any acutal content they ever had.

[ken5050]

Yeah..they're on the pink sheets...but there's still a chart..somewhere..

[Cultural Jihad]

Found it...(saln.ob)...

[BCrago66]

These idiots were running into financial trouble, yet they forgot they were sitting on a valuable asset: a long-term lease in the expensive San Francisco market. They could have sub-let the headquarters and moved into cheaper quarters in a less prime area - because you don't need prime real estate to run a dot.com business - and thereby turn the lease into a financial asset.

Even if the sub-let could not equal their rent, they would probably still be better off paying the difference to thier old landlord while renting at a cheaper place.

Instead, they do the worst possible thing: stay in the San Francisco property and pay top dollar while thier crappy lefty dot.com is losing money.

[ken5050]

That..in case you weren't aware, is called in medical parlance, a FLATLINE

[eeman]

OTC bulletin board quotes for Salon

To succintly summarize it: The current bid price for a share is 5 cents (down from $14 at its peak in 1999). However, their shares are so thinly traded, who knows exactly what they are worth. At 5 cents per share, their market capitalization at 50 million authorized shares (with only 14,155,276 outstanding shares) is 250,000 dollars, less than their deposit on their lease. 250K is also roughly similar to the amount raised on FR donations each year to keep this site going. I think we should have a fund raiser and either buy them outright or have a majority position.

[ken5050]

It also has value becuase of the huge tax-loss carry forward...however, there is a liability because of the subscription they sold.....there's cash due the subscribers, and they could request reimbursement....FR couldn't buy it, because FR is non-commerical....the question is....why buy it...better of using the money to start your own site....

[BOBTHENAILER]

Further proof that there's no money in lies.

I'm wondering when some RAT senator or house member will introduce a bill for public funding of Saloon.com. After all, we know how the media is now dominated by right wing hate groups.

[bert]

....and rent just one floor....

HMMMM. Is it the subbasement? Trolls like the danky dark.

[ClearCase_guy]

They could have sub-let the headquarters and moved into cheaper quarters in a less prime area

Are you mad? Could they get good lattes in a less prime area? Would their volvos be safe in a less prime area? Do you expect them to rub shoulders with rabble? We're talking about the cultural elite here! Have some respect!

[ItsOurTimeNow]

Of course...the Fairness Doctrine, dontchaknow?

[Pan_Yans Wife]

Why doesn't Salon just DIE already?