Salon Media Group, an Internet media company, announced today the successful completion of an additional round of financing, providing the company with necessary capital to continue operations as it works towards achieving profitability. The current round represents an investment of $800,000, bringing the entire investment in Salon since July, 2002, to $2,100,000. This current round was led by existing Salon investors Bill Hambrecht and John Warnock, a Salon board member.
"We're thrilled to have secured this new round of funding from some of our largest investors, providing the company with necessary capital to execute our plan to achieve break even," said Michael O'Donnell, Salon's president and chief executive officer. "We hope this funding gives current and prospective subscribers renewed confidence. We also believe this will boost our advertising sales as agencies and clients evaluate major media campaigns to run on Salon."
Salon also announced that it surpassed 60,000 active Premium subscribers this week and continues to enjoy an annual renewal rate of 72 percent. It also announced that 14 advertisers have signed contracts to purchase Salon's new "day pass" intercept advertising unit, which launched January 22nd. These advertisers include: Mercedes Benz, The Discovery Channel, Infiniti, Fox Television's "24" and "Married by America," Concord Records, HBO, American Express, Powell's Books, Mazda, Remedy Software, ACLU, National Geographic, and Tobacco Free Kids.
"Salon is well positioned to join other Internet businesses that are achieving financial success today. In lowering its cost structure, continuing to grow its subscription businesses and turning around its advertising sales, I believe that Salon's business model is poised to match the strength of its award-winning editorial," said John Warnock, Salon board member and founder and co-chairman of Adobe Systems.
"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release, including statements by Michael O'Donnell and other parties, 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 Salon. Factors that could cause actual results to differ materially from those described herein include: success in raising debt or equity financing; the economic environment of the media industry; the changes in the market for on-line advertising; growth in subscription revenue programs; uncertain revenue sources; expense projections and the general economic environment. More detailed information about these factors is set forth in the reports filed by Salon with the Securities and Exchange Commission including but not limited to the Form 10-Q filed by Salon for the period ending December 31, 2002. Salon 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 is a registered trademark of Salon Media Group, Inc. All other company and product names mentioned are trademarks of their respective owners.