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Salon's CEO Leaves
AP ^ | Oct 9, 2003

Posted on 10/09/2003 1:37:35 PM PDT by Tacis

The Associated Press

SAN FRANCISCO (AP) - Struggling online magazine publisher Salon Media Group said its chief executive officer, Michael O'Donnell, is leaving the company after seven years.

The San Francisco-based company, which has been battling to survive, gave no reason for O'Donnell's departure in an announcement Thursday. A call to O'Donnell for comment was not immediately returned.

O'Donnell will be replaced as CEO by Salon founder David Talbot, who is the company's chairman and editor-in-chief. Elizabeth Hambrecht, Salon's chief financial officer, will inherit O'Donnell's title as president.

A former software sales executive, O'Donnell joined Salon as president and publisher in December 1996. He became CEO shortly before Salon's initial public offering of stock in June 1999.

With accumulated losses of $83.6 million since its inception, Salon still hasn't proven it can make money. The company's chronic troubles prompted its independent auditors to issue warnings about its financial health in each of the past two years.

The miseries have decimated Salon's stock, which was trading Thursday at 7 cents per share in the over-the-counter market.

Salon paid O'Donnell an annual salary of $191,250.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; News/Current Events; Politics/Elections; US: California
KEYWORDS: algorelostgetoverit; didabangupjob; dnccharity; dotcoms; hrapbrown; internet; liberalbusinessplan; lyingliars; media; mediabias; moneypit; resignation; salon; salondeathwatch; salonstockdeathwatch; thatsuckingsound; ultraleftwing
With Davis leaving, probably a question of not having anyone to pay for the dirty tricks. Yah gotta believe that a leftist rag that can't make it in San Francisco, couldn't make it almost everywhere. Outside of the DNC, the Davis administration, or working for Begala or CNN, where would a guy like this get a job?
1 posted on 10/09/2003 1:37:35 PM PDT by Tacis
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2 posted on 10/09/2003 1:39:52 PM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
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To: Tacis
"...gave no reason for O'Donnell's departure"

The balance sheets however, were pretty clear on the reason.

3 posted on 10/09/2003 1:40:43 PM PDT by theDentist (Liberals can sugarcoat sh** all they want. I'm not biting.)
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To: theDentist
How about 7 cents per share?
4 posted on 10/09/2003 1:42:18 PM PDT by phil1750 (Love like you've never been hurt;Dance like nobody's watching;PRAY like it's your last prayer)
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To: theDentist
Is this rag still circling the bowl? I thought it was already a footnote in the early history of the internet.
5 posted on 10/09/2003 1:42:29 PM PDT by RiflemanSharpe (An American for a more socially and fiscally conservative America.)
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To: Tacis
Struggling online magazine publisher Salon Media Group...

"Struggling" is being polite...

SALON MEDIA GP (OTC BB:SALN.OB) Quote data by Reuters Edit
Last Trade: 0.05
Trade Time: 2:31PM ET
Change: 0.00 (0.00%)
Prev Close: 0.05
Open: 0.07
Bid: 0.05 x 5000
Ask: 0.08 x 5000
1y Target Est: N/A
Day's Range: 0.05 - 0.07
52wk Range: 0.02 - 0.12
Volume: 17,000
Avg Vol (3m): 24,136
Market Cap: 707.75K
P/E (ttm): N/A
EPS (ttm): -0.38
Div & Yield: N/A (N/A)
[Chart]
1d  5d  3m  6m  1y
Get research reports at breakthrough prices

6 posted on 10/09/2003 1:42:53 PM PDT by The_Victor
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To: Tacis; Victor; Liz; SierraWasp; BOBTHENAILER; NormsRevenge; Ernest_at_the_Beach; tubebender
A few weeks ago I predicted the upcoming zotting of Davis would be similiar to Pro Davis companies as what happen to Rat run companies in the US when the Clintoon left office.

Many rat controlled companies thrived under the Clintoon and Jake Reno. Once they were gone, the companies net values dropped like lead weights in the cesspool.

We will see the same thing happen with California companies which invested in or depended on Davis. As Tacis points out, Slate probably lost a big back door investor Tuesday.

Speaking of Zotting. Herr Davis got a real ZOT this Tuesday:


7 posted on 10/09/2003 2:04:56 PM PDT by Grampa Dave (Fight Liberalism 24/7/365 for only 17 cents / day. Donate $5 monthly to Free Republic.)
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To: Tacis
Peep this, it's the risk factors section of Salon Media's most recent quarterly report to the SEC from August 2003 (link to the actual Form 10-Q ). These things are usually pretty conservative in the risk factors area, but I've never seen one come out and say it was doubtful the company would continue as a going concern. If you really want a laugh, look at the balance sheets. They've been in trouble for a long time.

"RISK FACTORS

FACTORS THAT MAY AFFECT SALON'S FUTURE RESULTS AND MARKET PRICE OF STOCK

SALON WILL VERY LIKELY CEASE OPERATIONS IN ITS CURRENT FORM IF IT IS UNABLE TO RAISE ADDITIONAL CASH RESOURCES

Salon has received approximately $348,000 from the issuance of convertible notes payable subsequent to June 30, 2003. These funds, in conjunction with collections of accounts receivable and Salon Premium subscriptions, have been used to fund operations as of this filing. Salon needs to secure additional cash resources in order to continue as a going concern. Salon is attempting to secure additional funds from the issuance of equity securities and instruments that convert into equity securities and from the sale of its prepaid advertising rights.

If Salon does not secure additional funds from the issuance of equity securities and instruments that convert into equity securities, or from the sale of advertising rights, Salon may be unable to continue as a going concern and cease operations. Salon cannot determine at this time whether, or to what extent, it will be successful in securing additional cash resources during its second quarter of its year ending March 31, 2004 to meet operating requirements until it reaches cash flow breakeven.

SALON HAS RELIED ON RELATED PARITIES FOR SIGNIFICANT INVESTMENT CAPITAL

Salon has been relying on cash from related parties to fund operations. Out of $2.6 million of cash received by Salon from the issuance of convertible notes payable as of June 30, 2003, $2.1 million was from related parties. Of the approximate $348,000 cash received by Salon from the issuance of convertible notes payable issued subsequent to June 30, 2003, $250,000 was from related parties. Curtailment of cash investments by related parties could detrimentally impact Salon's ability to continue its operations and Salon may be unable to continue as a going concern.

SALON LACKS SIGNIFICANT REVENUES AND HAS A HISTORY OF LOSSES

Salon has a history of significant losses and expects to incur operating losses in the near future. For the three months ended June 30, 2003, Salon had net losses attributable to common stockholders of $1.3 million and had an accumulated deficit of $83.6 million. If and when Salon does achieve profitability, Salon may not be able to sustain or increase profitability on a quarterly or annual basis in the future. If revenues grow more slowly than Salon anticipates or operating expenses exceed expectations, financial results will most likely be severely harmed and the ability of Salon to continue its operations will be seriously jeopardized.

Salon's independent accountants provided a "going-concern" audit opinion on the consolidated financial statements for the years ended March 31, 2003, 2002 and 2001. The audit opinion reported 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. As a result of the "going-concern" opinion, Salon's stock price and investment prospects may be adversely affected, thus limiting financing choices and raising concerns about the realization of value on assets and operations."
8 posted on 10/09/2003 3:04:18 PM PDT by TastyManatees (http://www.tastymanatees.com)
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To: Tacis; Timesink

So long, Boy Genius.

I hear the L.A. Times is hiring.

9 posted on 10/09/2003 3:04:56 PM PDT by martin_fierro (The trivmphant retvrn of A v v n c v l v s M a x i m v s)
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To: *Salon Deathwatch; Drango
To find all articles tagged or indexed using Salon Deathwatch, click below:
  click here >>> Salon Deathwatch <<< click here  
(To view all FR Bump Lists, click here)

10 posted on 10/09/2003 3:58:13 PM PDT by Timesink
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To: Tacis
The end must be very close.
11 posted on 10/09/2003 4:11:07 PM PDT by Rebelbase
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To: Tacis; theDentist; phil1750; RiflemanSharpe; The_Victor; Victor; Liz; SierraWasp; BOBTHENAILER; ...
Yah gotta believe that a leftist rag that can't make it in San Francisco, couldn't make it almost everywhere.

Actually ... ironically ... schadenfreudally even, Salon would have had much more of a fighting chance if they hadn't located in San Francisco. First of all, SF is about the only city in the country arguably more expensive than New York City, so everything cost more for them: Salaries, utilities, furniture, you name it. On top of that, they signed a long-term lease for an unnecessarily huge amount of space in one of the single most expensive buildings in all of San Francisco, and did it near the pinnacle of the dotcom fraud bubble, when prices were even MORE expensive. Why? Ego, nothing else.

Then they paid everyone too much, held tons of parties in order to be part of the SF dotcom social scene, etc. Think how much cheaper it would have been to locate in, say, Topeka; since they were nothing but a content site, they could have headquartered themselves almost anywhere. But if they'd done that, well ... they would have missed out on the big SF party, and that's what was most important, right? </sarcasm>

They made their choice, and now they're paying the price, literally. Too bad, so sad.

12 posted on 10/09/2003 4:12:09 PM PDT by Timesink
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To: Tacis
My money was on Jayson Blair to get the call.
13 posted on 10/09/2003 4:15:03 PM PDT by Consort
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To: theDentist
The San Francisco-based company, which has been battling to survive, gave no reason for O'Donnell's departure in an announcement Thursday.

Rats? Sinking ship?

14 posted on 10/09/2003 4:16:17 PM PDT by Bloody Sam Roberts ()
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To: Grampa Dave; Flurry; BOBTHENAILER; Libloather; Timesink; Southack
Davis got booted out smartly alright, but I betcha the dumb Dim still doesn't "get it."

Watch him carefully.

Soon he'll crouch down, start sobbing, and assume the position of "victim." in order to get a hefty book contract, wherein he'll cry his fool eyes out about how unfair the recall was, how Pubbies railroaded him.

Davis is gonna be bombed on valium and vodka to sedate himself, sobbing himself into oblivion until the book residuals start rolling in, that is.

Victimization.....the last refuge of a scoundrel.

15 posted on 10/09/2003 4:29:05 PM PDT by Liz
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To: Tacis
He probably also figures that while so much noise in the media, especially trashing conservatives he can duck out and no one will notice.
16 posted on 10/09/2003 4:29:58 PM PDT by Just mythoughts
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To: Tacis
snicker....
17 posted on 10/09/2003 5:02:52 PM PDT by Drango (What's mine is mine: And what's yours is yours: And what's mine is not yours.)
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To: TastyManatees; Liz; BOBTHENAILER; SierraWasp
A lot of us would like to know which parties/companies if any or so called non profits if any have been bailing this DOA lib organization out:

SALON HAS RELIED ON RELATED PARTIES FOR SIGNIFICANT INVESTMENT CAPITAL

Salon has been relying on cash from related parties to fund operations. Out of $2.6 million of cash received by Salon from the issuance of convertible notes payable as of June 30, 2003, $2.1 million was from related parties.

Will the upcoming audit of Herr Davis's financial tracks show anything related to Salon?
18 posted on 10/09/2003 5:11:28 PM PDT by Grampa Dave (Fight Liberalism 24/7/365 for only 17 cents / day. Donate $5 monthly to Free Republic.)
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To: Liz; Grampa Dave; Sabertooth; Nick Danger; Howlin; RJayneJ; JohnHuang2; holdonnow; Perlstein
Results:

1 records found in 0.2188 seconds.
 

Search Criteria:
Donor name: talbot, d
Donor State: CA
Cycle(s) selected: 2004, 2002, 2000

Start another search

Sort by Name
Sort by Date
Sort by Amount

Total for this search: $500

Contributor

Occupation

Date

Amount

Recipient

TALBOT, DAVID
SAN FRANCISCO,CA 94110

SALON MEDIA GROUP/EDITOR

4/7/2003

$500

Dean, Howard

It's not exactly fair and balanced journalism when your editor is a donor to a political campaign...

19 posted on 10/09/2003 5:13:58 PM PDT by Southack (Media bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
Great find.

One can only imagine what he would have donated if his corporation wasn't a zombie that will not lay down to finally die.
20 posted on 10/09/2003 5:30:21 PM PDT by Grampa Dave (Fight Liberalism 24/7/365 for only 17 cents / day. Donate $5 monthly to Free Republic.)
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To: Liz
Davis is a victim of himself. California is also a victim of Davis. And it all happened under Bill's watch.
21 posted on 10/09/2003 5:32:02 PM PDT by Conspiracy Guy (I have over 41 years experience, at acting 8 years old. That will be 42 years in Jan 04.)
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To: Grampa Dave
Will the upcoming audit of Herr Davis's financial tracks show anything related to Salon?

Probably. But we won't see the really "interesting" connections. Many Cali Bigs had a pecuniary interest in Davis and his office. Betcha the payoffs were huge, many times his gov't salary. Would be interesting to know how he hid the graft.....somewhere off the Pacific Rim.

22 posted on 10/10/2003 12:37:59 AM PDT by Liz
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To: Liz; ex-Texan; Ernest_at_the_Beach; tubebender; NormsRevenge
The payoffs back and forth were huge.

That is why Herr Davis has ordered the big shredders to hide his trail.

Last night at a meeting this shredding of paper by Davis was discussed. An interesting prediction was brought out by a fellow whose business has survived the years of Davis. He felt that every business big or small which made significant donations to Davis to fight the recall should be checked to see what else they haved done for Davis. Of course what did Davis do for them. He felt that we could see a mini surge of bankruptcies of small to medium businesses with too much connections to Davis.

He saw me grinning and asked if I felt that he was wrong. I replied, "No, you are right on track! For once, I didn't have to bring up this issue.!"

Several others agreed with us with the notable silence from two rabid Davis supporters, who are well known local Rats.
23 posted on 10/10/2003 6:31:19 AM PDT by Grampa Dave (Fight Liberalism 24/7/365 for only 17 cents / day. Donate $5 monthly to Free Republic.)
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To: Grampa Dave
.....we could see a mini surge of bankruptcies of small to medium businesses with too much connections to Davis. He saw me grinning and asked if I felt that he was wrong. I replied, "No, you are right on track! For once, I didn't have to bring up this issue.!".....

Thanks for the realtime update. Yup, this is your baliwick, Gramps....connecting the crooked the pols to the bankruptcies. LOL.

Davis' shredding must be stopped even if you have to send in a ringer dressed in the Acme Shredding Co uniform. He could say it's his Halloween outfit.....LOL.

24 posted on 10/10/2003 7:52:39 AM PDT by Liz
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To: Liz
The rats, who have committed crimes while working under Herr Davis should be very/very glad that our guys offed UDay this year.

If not, Davis probably would have hired UDay to shred a lot of little and medium size rats with the shredders to keep them quiet.
25 posted on 10/10/2003 8:33:47 AM PDT by Grampa Dave (Fight Liberalism 24/7/365 for only 17 cents / day. Donate $5 monthly to Free Republic.)
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To: The_Victor
Here's the obligatory Salon Stock Deathwatch (you only gave the day's account).

I can't pull up the 5 year swan dive. Looks like they got their annual bailout this September (stock was down to 2 cents).


26 posted on 10/10/2003 12:04:13 PM PDT by weegee
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