Tech website Gigaom shutsdown, says its unable to pay creditors
Stuttering of the tech and media website follows by about two years the acquisition of PaidContent.org, a website launched by journalist Rafat Ali in 2002, who currently publishes the travel website Skift
The tech blog website Gigaom announced last night that it would be shutdown. Founded by Om Malik in 2006, Gigaom covered technology and the also the media, to a certain extent after to acquired the website PaidContent.org in 2012.
“This hurts more than I can say: I was just told Gigaom is shutting down — it has run out of money,” Tweeted Mathew Ingram, the former technology writer for the Globe and Mail who wrote about media for the site. “We tried our best, but it wasn’t enough.”
“Gigaom recently became unable to pay its creditors in full at this time,” the company wrote online last night. “As a result, the company is working with its creditors that have rights to all of the company’s assets as their collateral. All operations have ceased. We do not know at this time what the lenders intend to do with the assets or if there will be any future operations using those assets. The company does not currently intend to file bankruptcy. We would like to take a moment and thank our readers and our community for supporting us all along.”
“Well this has been an interesting trip to the west coast to say the very least,” Tweeted Kevin Tofel, a senior writer at Gigaom. “Going to get up, dust myself off and look to the future!”
The shuttering of Gigaom is a reminder that the media business can be rough for everyone, not just print publishers. Internet advertising is cheap and driven by impressions, meaning that much of the revenue goes to sites that are simply established to syphon off marketing dollars.
Additionally, few of the newer companies that are entering the tech and media business have robust marketing budgets. A recent issue of a publishing trade journal that I found in my mailbox last week contained only three pages of paid advertising. As a result, most media trade journals, and many tech websites, have gone into the events business to sustain their operations. The result is an endless string of events, often with the some speakers (some of who put trademarks next to their names without the slightest sense of irony).