David Talbot, the founder of web-based Salon magazine, announced he is stepping down from his position as editor in chief and CEO.
Salon.com was founded in 1995 and was praised for being one of the first online publications with a magazine like flair and quality. He will be replaced as editor by Joan Walsh who has been his deputy. Elizabeth Hambrecht, Salon’s president, will become its chief executive. The company says Talbot will stay on as chairman of the board.
The new management didn’t wait long to change their staff page. David Talbot is no where to be found! The company announced the managment changes in the same release that they announced this quarters financials … which is also curious. Hmm.
Salon announced a net profit of $400,000 for its third quarter ended December 31, 2004, compared to a net loss of $1.2 million for its third quarter the year before. Total revenues for the quarter were $2.2 million, an increase of 69% from $1.3 million a year ago.
Advertising revenues increased to $1.3 million from $600,000 a year ago. Salon has not recorded quarterly revenues in excess of $2 million since the quarter that ended December 31, 2000, four years earlier.
Salon also stated that its paid Premium subscribers at the end of the quarter were approximately 89,100 compared to approximately 73,700 a year ago.
Despite the seeminly good news, Salon makes some rather negative predictions for the future.
Salon states that it anticipates a net loss for its quarter ending March 31, 2005 and cannot accurately predict when it will reach net profit in future quarters. The company also does not believe it can sustain the growth of its paying subsriber base.
Other Coverage:
The Gawker makes a joke of David Talbot’s departure, stating ” We don’t usually cover hair care stories, but The New York Times is reporting that David Talbot, the chief executive and editor-in-chief of Salon is stepping down. Why a salon needs an editor-in-chief (and, further, why media writer David Carr is covering this for The Times) is unclear.”
Yes, kinda funny … but a bit basic as jokes go.
The New York Times had a lengthy report on the Salon management change and the Salon story. The Times article reads almost like a corporate obituary rather than the traditional management business article. However, it is definately worth reading if you are into eBusiness stories.
Here is a clip from the NY Times article …
“A former newspaperman at The San Francisco Examiner, Mr. Talbot sensed a significant business opportunity when the Web began to flourish and became one of its chief evangelists. At the time, the Web was seen not only as a utility for consumers, but as a potential giant killer as well.
“Dead-tree” journalism would go the way of typewriters, the theory went, and nimble, lippy sources of information like Salon, and its chief competitor, Slate, would become the must-click option for those in search of up-to-the-minute information.”
murdok is the CEO of murdok which publishes over 200 websites and email newsletters.
Rich also publishes his blog WebProBlog which focuses on internet business and marketing trends.
