Web Implosion

Mar 22, 2001 2:53pm CST tags: Industry News: PC & Console
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.

        

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