(AP) Online magazine publisher Salon Media Group Inc. warned that it may not survive beyond this month if it can’t raise more money to pay its rent and other bills.
The San Francisco-based company painted a grim financial picture on Friday in a quarterly report filed with the Securities and Exchange Commission.
Things are so bad, Salon said, it stopped paying rent for its San Francisco headquarters in December, prompting the landlord to issue a Jan. 29 demand for a $200,000 payment.
To raise money, the company said it may sell its rights to $5.6 million worth of advertising on a Cablevision Systems Corp. subsidiary for as little as $1 million.
Friday’s was the latest in a series of dire projections made by Salon. The company warned late last year it might go out of business, but then raised enough money to stay alive temporarily. Salon’s troubles caused its stock to be delisted from the Nasdaq Stock Market in November.
Although its news coverage and commentary have attracted a loyal audience, Salon hasn’t been able to make money. The company said it lost another $1.2 million during the final three months of 2002, bringing its cumulative deficit to $81 million.
Unable to drum up enough advertising to pay the bills, Salon started charging subscriptions to read some of its stories in 2001. The company began charging fees for all its once-free content late last month as part of its last-ditch survival effort. At of Dec. 31, Salon’s site had 47,300 subscribers.