Tuesday, August 16, 2005
Salon to sell the WELLSalon bought The WELL, a 20-year-old online community known for smart debate, flamewars, and an enormous population of deadheads, in 1999. At the time, WELL users were freaked out that the company would run the community into the ground (this kind of fear is another regular feature on the WELL, which gets handed around from owner to owner quite a bit). Salon's stewardship of the WELL was fine, as it turned out, but now the company is planning to sell the WELL off, for reasons I'm not super-clear on, and so once again the message-boards are all a-twitter with speculation about possible new owners.
Salon purchased The Well, an on-line community, in 1999. Even though this line of business has generated positive cash-flow since its acquisition, and is forecast to generate $0.5 million of revenue for the year ending March 31, 2006, Salon is evaluating what role, if any, this business will have in the future. As such, Salon has begun to explore the potential sale of the on-line community. The assets of The Well are predominately $0.2 million of goodwill. If The Well operation is sold, Salon will most likely not attain its forecasted revenue of $7.0 million. The potential sale of The Well is not driven by a need to generate cash to finance Salon's operations.Link
posted by Cory Doctorow at 11:27:14 PM
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