Gawker Media battening down

Nick Denton is tightening his belt, according to a post in his blog on Friday.

"We're retrenching: disposing of two of our 15 sites, Sploid and Screenhead, and reshuffling staff on four more, Gawker, Gizmodo, Wonkette and Gridskipper.

Why?

First, advertising is a fickle thing. Particularly the entertainment advertising upon which so many websites depend. A change in the advertising industry's conventional wisdom, cutbacks by the studios: it wouldn't take much to prick the current exuberance. Better to sober up now, before the end of the party.

Second, operational costs are increasing. For editorial talent, we now pay within the range of mainstream media. Technology expenses are growing even faster. The open-source publishing systems, upon which most weblogs depend, cannot handle larger and more sophisticated sites. The expansion of internet media is inflating costs for services such as ad-serving."

Something to think about...

emily | 4:37 PM | Message from textually.org |
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