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UGO Reducing Payments to Affiliates - FrostyTech.com UGO Reducing Payments to Affiliates
Fri Jan 05, 2001 | 3:23P| PermaLink
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.

FULL STORY @ SILICON ALLEY DAILY


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