Salon death watch (cont.)

[The Salon death watch commenced about time the dot.com’s went bust. =

Still, it survives…]

salon-248850.php>

Why Nobody Wants To Work At ‘Salon’

The recent staff changes at Salon, not to mention their bonkers-crazy =

political correspondents, made us wonder how things are holding up at =

the famously bi-coastal public company. So we took a little gander at =

some of its recent filings with the SEC. Yikes!

“Salon has been relying on cash infusions from related parties to =

fund operations. The related parties are primarily John Warnock, a =

Director of Salon, and William Hambrecht. William Hambrecht [who is =

worth $500 million] is the father of Salon’s President and Chief =

Executive Officer” Elizabeth Hambrecht. Good hire! Warnock and =

Hambrecht also own a ton of Salon stock.

“Salon has historically lacked significant revenues and has a history =

of losses.” Well, sure. Also, some fancy accounting firm did an audit =

that reports “substantial doubt about Salon’s ability to continue as =

a going concern, citing issues such as the history of losses and =

absence of current profitability.”

Also, everyone hates that darn Site Pass, except some geniuses over =

there who think it’s going to save them: “As a result of analyzing =

the traffic patterns to Salon’s Website, Salon believes that its Site =

Pass advertising model, which Salon credits as instrumental in =

increasing advertising revenues, and driving memberships to Salon =

Premium, inhibits growth in traffic to its Website.” So: fewer =

visitors, but better bang per buck per visitor. (How Times Select!) =

Things looked up a bit in the last quarter, with advertising revenues =

at a “record” $2.8 million and a profit (!) of=97drumroll, please=97 =

$200,000.

But possibly the best part of last year’s Annual Report is: “Salon is =

under budgetary constraints to control expenditures. These =

constraints affect editorial staffing levels and the purchase of =

content from freelance writers.” And: “Due to Salon’s history of =

losses, Salon may experience difficulty in hiring and retaining =

highly skilled employees with appropriate qualifications. Salon may =

be unable to retain its current key employees or attract, integrate =

or retain other qualified employees in the future. If Salon does not =

succeed in attracting new personnel or retaining and motivating its =

current personnel, its business could be harmed.”

We’ll be looking forward to the 2006 report, which should be out by =

early summer. Anyway, it’s no wonder they had to hire Joy Press to do =

two jobs instead of one. And maybe they’re paying Glenn Greenwald in =

reais? =97Doree

Salon 10-K [SEC]

1084332/000126645406000459/0001266454-06-000459.txt> Salon Third Quarter Results [SEC]

data/1084332/000126645407000067/0001266454-07-000067.txt>

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