According to the New York Post’s Keith J. Kelly, Spinmedia -owners and/or advertising salesmen for everyone from Spin to Stereogum to Booklynvegan, have run out of money and are now reoganizing their debut and giving their creditors equity in a new company called SpinMedia group. Meanwhile, Ron Burkle and magic Johnson lost al their money, incuding at least $10 Million invested in vibe in 2011.
Meanwhile, we here at rock nyc are left with the same question: how can you have 45 million unique visitors a day and go bankrupt? There seems to be only one of two possibilities:
1. Spinmedia is a disorganized spendthrift financial black hole.
or
2. The bottom has fallen out of the web advertising business and big time. Certainly, if you want 46 million somewhat hip readers, mostly young, this is a great environment. How can they not sell it out the ying yang??
Certainly, the thing to keep in mind when it comes to digital sales is like all things digital, it is too damn wide. Same with television, same with music. When there was only four TV networks you cold easily buy a 50 share, what can you do today? Today you’d pay a million bucks for it without so much as blinking.
But despite the width at work here, 45 million visitors a day s a big enough number where you can really do some damage. Bu apparently that isn’t the case at all, is it? There is no there there, the needle isn’t being moved. Selling advertising on websites is almost a ponzi scheme.
“In all, $125 million in equity, including stakes held by venture capital firms, went to zero.” Meanwhile. CEO Dale Strang said that SpinMedia Group would be profitable in 2014.