Online Journalism News

Cash injection for Salon.com

Struggling Salon.com has been granted a reprieve following an $800,000 investment that will give the site more time to break even.

Previous investors Bill Hambrecht and John Warnock have provided the new funding, which brings the total investment in Salon since its troubles began up to $2,100,000.

After the introduction of subscription charges in April 2001, Salon has tried various ways of making a profit. In November of that year the site introduced paid-for day passes for its premium content, including compulsory click-through adverts from sponsors such as Mercedes-Benz and The Discovery Channel.

Salon.com now has more than 60,000 subscribers and a robust 72 per cent annual renewal rate.

"We're thrilled to have secured this new round of funding from some of our largest investors providing the company with the necessary capital to execute our plan to achieve break even," said Salon's president Michael O'Donnell.

Mr O'Donnell added that he hoped the investment would give current and prospective subscribers renewed confidence.

Sources:
http://www.salon.com/press/releases/2003/03/28/march_03_funding/index.html
http://www.internetnews.com/IAR/print.php/2172201

See also:
http://www.journalism.co.uk/news/story578.html
http://www.journalism.co.uk/news/story561.html

Tags (click tag to find related articles; click icon for feed):
salon | usd | michael odonnell | bill hambrecht | john warnock |

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