SAN FRANCISCO--The parent company of struggling online magazine Salon.com on Thursday announced an injection of $2.5 million in cash and the firing of 14 employees to make the money last longer.
San Francisco-based Salon Media Group Inc. said it received the $2.5 million from a group of investors that includes investment banker William Hambrecht, whose firm handled the company's initial public offering in June 1999. John Warnock, the founder and chairman of Adobe Systems, also invested in the company and joined Salon's board of directors.
Salon was running out of money. As of June 30, the company had just $1.4 million in cash, according to a financial statement released Thursday. The company sustained a loss of $2.9 million, or 22 cents per share, on $973,000 in revenue during the three months ended June 30, down from a loss of $4.5 million, or 36 cents per share, on revenue of $1.8 million at the same time last year.
As part of its efforts to preserve its dwindling cash, Salon said it will lay off 14 workers from its staff. The company had 100 employees as of March 31, according to documents filed with the Securities and Exchange Commission.
To generate more revenue, Salon said it will start charging readers for its "Table Talk" feature. The Web site has signed up 12,000 subscribers since introducing a premium service in April.
As part of its battle for survival, Salon is trying to keep its sagging stock listed on the Nasdaq Stock Market. The company made its case for remaining listed on Nasdaq in a hearing last month. The company's shares dipped 1 cent Thursday to close at 44 cents.
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