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UGO Reducing Payments to Affiliates - 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.


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