Zango Reportedly Shuts Down Operations

gonzo · 04-21-2009

SEATTLE — Adware maker Zango apparently has shut down its operations.
XBIZ emails and calls to Zango’s Seattle office went unanswered after The Register reported that the company was forced to pull the plug on its business after it was left unable to pay off its debts.

The report further said that video search engine firm Blinkx purchased a portion of its assets from the company.

"The bank foreclosed on Zango and Blinkx purchased some technical assets from the bank, including some IP and hardware, which constituted about 10 percent of Zango's total assets," a Blinkx spokeswoman said.
Zango’s apparent closure may mean the end of the adware business model. Claria, formally Gator; WhenU; and DirectRevenue all have closed up shop in recent years.

Zango started off as 180 Solutions in 2004, raising $40 million from Spectrum Equity Investors and growing to employ more than 230 workers at its peak.

The company has faced accusations of deceptive installation practices and problems in removing its software once installed led to a lawsuit by the Federal Trade Commission.

Zango settled the suit in November 2006, agreeing to pay a fine of $3 million without admitting guilt. The firm said that its problems were due to rogue affiliates.

The company currently is embroiled in a $750,000 lawsuit in California, where Epic Cash has asked a court to rule against the adware maker and AdultFriendFinder.

Zango and AdultFriendFinder are accused of :diverting traffic away from Epic Cash sites and converted Epic Cash’s business to their benefit,” by “taking advantage of plaintiff’s marketing efforts, presumably when potential consumers are inputting certain keywords or searching for specific sites, which subsequently leads to Zango pop-up ads. Ken Smith, Zango’s co-founder and former chief technology officer, said that Zango finished its life with a “fire sale,” on his blog.

RawAlex · 04-21-2009

Why am I never surprised to see "rogue affiliates" and "friendfinder" in the same story?

TheEnforcer · 04-22-2009

Will be interesting to see where the lawsuit goes from here....

04-21-2009	#1
gonzo Fat Fucking Nobody Want to see your own Advertising Here! Join Date: Apr 2003 Location: Atlanta,Ga. Posts: 17,795 Blog Entries: 11	Zango Reportedly Shuts Down Operations SEATTLE — Adware maker Zango apparently has shut down its operations. XBIZ emails and calls to Zango’s Seattle office went unanswered after The Register reported that the company was forced to pull the plug on its business after it was left unable to pay off its debts. The report further said that video search engine firm Blinkx purchased a portion of its assets from the company. "The bank foreclosed on Zango and Blinkx purchased some technical assets from the bank, including some IP and hardware, which constituted about 10 percent of Zango's total assets," a Blinkx spokeswoman said. Zango’s apparent closure may mean the end of the adware business model. Claria, formally Gator; WhenU; and DirectRevenue all have closed up shop in recent years. Zango started off as 180 Solutions in 2004, raising $40 million from Spectrum Equity Investors and growing to employ more than 230 workers at its peak. The company has faced accusations of deceptive installation practices and problems in removing its software once installed led to a lawsuit by the Federal Trade Commission. Zango settled the suit in November 2006, agreeing to pay a fine of $3 million without admitting guilt. The firm said that its problems were due to rogue affiliates. The company currently is embroiled in a $750,000 lawsuit in California, where Epic Cash has asked a court to rule against the adware maker and AdultFriendFinder. Zango and AdultFriendFinder are accused of :diverting traffic away from Epic Cash sites and converted Epic Cash’s business to their benefit,” by “taking advantage of plaintiff’s marketing efforts, presumably when potential consumers are inputting certain keywords or searching for specific sites, which subsequently leads to Zango pop-up ads. Ken Smith, Zango’s co-founder and former chief technology officer, said that Zango finished its life with a “fire sale,” on his blog. __________________ We are putting the bastards of this world on notice; greed and corruption will always be met with "a voice made of ink and rage." "Never try and be like anyone else" - Hunter S. Thompson "The truth is the truth no matter how you try and package a lie" - Shellee Hale

04-21-2009	#2
RawAlex Members $100 for every ImLive sign-up Join Date: Oct 2002 Posts: 4,036	Re: Zango Reportedly Shuts Down Operations Why am I never surprised to see "rogue affiliates" and "friendfinder" in the same story? __________________ Let's go to the edge of disaster Push the pedal and go a little faster Let's slam into a wall at ramming speed Let's go to the edge of a mountain Jump off and lets start countin' Hit the ground and tell me if it bleeds

04-22-2009	#3
TheEnforcer Scored VIP to Anton's Piss Tank Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 8,781	Re: Zango Reportedly Shuts Down Operations Will be interesting to see where the lawsuit goes from here....