Well this is a pretty interesting development. The other day word came out that the
quite huge Salon.com website
had
decided to start offering a subscription option for people to pay $2.50 a month to
view their website ad-free. But
according
to this news item quoting the CFO, (Thanks mike burbidge) the page will be
going
out of business in just 3 months. They are burning through over a million
dollars every month to run the website and the clock is ticking. There are quite a few
large websites actually right now on the chopping block, the fallout round1 is completed,
but we're gonna see a bunch of websites implode over the next several months as the newly
adjusted values on advertising on the web just cant support those crazy budgets. Trying to
sell a website right now in hopes of jumping ship are pretty slim too.
"Rather than acquiring the whole company, a
strategic buyer could wait until the site's dead, and then hire its talent," said
another source who wished to remain anonymous. "And there's no money in it for a
financial buyer. Ad revenue models have been hammered and a paid subscription for content
model has not played well."
Why is this all here? You guys can absolutely count on losing a few of the big-name
gaming websites in the coming months. Everyone is getting toasted right now. The good news
is, for the guys who can weather the storm there is a pretty bright future. But damn that
seems a long ways off right now.