Salon's CEO Leaves

AP ^ | Oct 9, 2003

[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.

[Tacis]

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?

[Support Free Republic]

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[theDentist]

"...gave no reason for O'Donnell's departure"

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

[phil1750]

How about 7 cents per share?

[RiflemanSharpe]

Is this rag still circling the bowl? I thought it was already a footnote in the early history of the internet.

[The_Victor]

Struggling online magazine publisher Salon Media Group...

"Struggling" is being polite...

SALON MEDIA GP (OTC BB:SALN.OB) Quote data by Reuters

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[Grampa Dave]

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:

[TastyManatees]

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."

[martin_fierro]

So long, Boy Genius.

I hear the L.A. Times is hiring.

[Timesink]

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)

[Rebelbase]

The end must be very close.

[Timesink]

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.

[Consort]

My money was on Jayson Blair to get the call.

[Bloody Sam Roberts]

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?

[Liz]

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.

[Just mythoughts]

He probably also figures that while so much noise in the media, especially trashing conservatives he can duck out and no one will notice.

[Drango]

snicker....

[Grampa Dave]

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?

[Southack]

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...

[Grampa Dave]

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.