from Silicon Alley Daily - January 4th, 2001
In a cost-cutting move, entertainment portal UGO is renegotiating its
contracts with its 350 affiliates' websites, a move that will reduce the
amount of money UGO doles out to each site.
The renegotiations are part of an agreement to collect $25 million in
funding from UGO's investors. UGO has already received $10 million; the
remaining $15 million is incumbent on UGO slashing costs. To date, the
company, launched in September 1998 as a portal for 18-to-34-year-old men,
has raised $70 million from such companies as Griffin Holdings, Chase
Entertainment, GRP, and J.W. Seligman.
"The affiliate sites largely have been very cooperative; they understand
what is going on in the marketplace," said J Moses, CEO of UGO, who added
that the company is expected to reach profitability by summer 2001.
Representatives from UGO's affiliate sites could not be reached for comment
by press time.