SAN FRANCISCO, Sept. 26 /PRNewswire/ -- Salon Media Group, Inc. (Nasdaq: SALN), a leading new media company announced today that it has secured a second phase of new financing, totaling approximately $750,000 from four additional investors, led by Michael Fuchs, former head of Home Box Office (HBO) and Wasserstein Adelson Ventures LP, an existing Salon investor. This new cash infusion brings Salon's total financing round, completed on September 13, 2001 to approximately $3.25 million, consisting of 15 investors. Fuchs will join Salon's Board of Directors.
"We're pleased to secure this additional financing and to bring an experienced media executive like Michael Fuchs to the Salon Board," said Salon President and CEO, Michael O'Donnell. "This provides us with more financial strength to weather the current Internet shakeout. Michael Fuchs' management expertise in building a successful subscription-based media property such as HBO should be invaluable to us."
Salon Surpasses 20,000 Paid Subscribers In recent months, Salon has placed increasing emphasis on its subscription strategy, having successfully established a new Premium subscription service and having converted its Table Talk online community to a paid service. Subscribers to Salon's three subscription businesses now exceed 20,000. Despite the current advertising downturn affecting the entire media industry, Salon also remains committed to building its ad sales revenues, recently securing advertising from major customers such as PBS, Olympus, Verizon, Universal Studios, Packard Foundation, Discover Card and 20th Century Fox.
"Over the last six years, Salon has established one of the leading new media brands," said Fuchs. "I believe consumers will pay for Salon's valuable content and I look forward to working with them to achieve their subscription goals and scale its business to even greater proportions."
Founded in 1995, Salon Media Group is a leading Internet media company that produces 10 award-winning, original content sites and hosts two subscription-based online communities, The WELL and Table Talk. Salon logged 3.8 million unique visitors in July 2001, as audited by the Audit Bureau of Circulations. Companies which have advertised on Salon include IBM, Lexus, Microsoft, Universal Studios, Hewlett-Packard, Mastercard, Virgin Megastore Online, Kimberly Clark, Powell's Books, Discover Card and Intel.
"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release, including the statements by Michael O'Donnell and Michael Fuchs, contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein. The forward-looking statements contained herein include statements about future financial and operating results of the Company and benefits of the financing. Factors that could cause actual results to differ materially from those described herein include: the inability to obtain regulatory approvals; the economic environment of the media industry; the difficulty in securing on-line advertising; uncertain revenue sources and the general economic environment. More detailed information about these factors is set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
NOTE: Salon.com is a registered trademark of Salon Media Group, Inc. All other company and product names mentioned are trademarks of their respective owners.