By: Michael Liedtke, AP Business Writer (AP) Sinking along with the Internet economy that it covered, the weekly
Industry Standard magazine is suspending its print edition and planning to file for Chapter 11 bankruptcy protection.
Boston-based International Data Group, the Standard's majority owner, declined to comment Thursday, but the magazine confirmed the plans to indefinitely suspend publication in a story posted on its Web site Thursday evening.
"This is a very sad day for everybody who has helped make the
Industry Standard a great publication," editor in chief Jonathan Weber said in the online story. "We're very proud of what we have accomplished, and we're hopeful that the magazine and the Web site will find a new home."
The magazine said it will likely file for bankruptcy protection and most of its 180 workers will lose their jobs. It plans to continue its Web site with a limited editorial staff.
In a memo from Standard Media International's investors and board of directors obtained by The Associated Press, the decision to seek Chapter 11 protection was the result of a deep technology industry slump that has resulted in mass layoffs and drastic cutbacks. With few buyers in the market, companies reduced their advertising budgets, which hit the magazine hard.
After raking in $140 million in revenue last year, the
Standard is on pace for $40 million this year, a drop-off of more than 70%, the memo said.
Bulging with snazzy ads proclaiming how technology industry would change the world, the
Standard became a benchmark for the dot-com industry. As it covered the rise of unprofitable Internet companies that became Wall Street darlings, the
Standard joined in the celebration with fancy parties and elaborate technology conferences.
The
Standard isn't the first of its breed to cash in its chips.
In June,
Business 2.0's parent company sold the magazine for a reported $68 million to AOL Time Warner, which transferred the name to its
eCompany magazine. Other prominent New Economy magazines such as
Red Herring and
Upside have been dumping workers and searching for cash infusions.
On the Net:
http://www.thestandard.com
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