| GeoSign of the Times
Post Arbitrage Crackdown's High Profile Casualty |
incrediBILL
msg:3353857 | 8:14 pm on May 30, 2007 (gmt 0) |
GeoSign, who most recently was making news with a $160M in financial backing [webmasterworld.com], just announced massive layoffs [guelphmercury.com] a couple of months later. The follow-up article [guelphmercury.com] suggests as many as 50-100 got the axe. | Internet rivals are following this general trend in the industry, he said, adding it's not a question of the firm being forced to cut back because of dwindling funds at its disposal. |
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I'm not buying that statement considering they were rumored to be spending $1M/month to generate $20M/month and have a $160M in backing. It seems more likely the arbitrage crackdown at Google must've seriously impacted their revenue stream otherwise they would be hiring and growing, not firing and retreating to a better cash flow position. Hard to be sure, but it's a good speculation based on all the June 1st arbitrage site closings [webmasterworld.com] and the uncanny timing of their layoff news. [edited by: incrediBILL at 8:23 pm (utc) on May 30, 2007]
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