Cash Crisis Jolts Jupiter Out of Orbit

11 April 2002

Internet ratings specialist Jupiter Media Metrix is in danger of disappearing into the same black hole that has already engulfed many of the dotcom supernova whose decline and fall it has charted over the last few years.

The New York-headquartered agency, which tracks and analyzes technology trends and publishes web traffic data, this week began the sell-off of assets it announced earlier this month in a filing with the Securities and Exchange Commission. In that filing, Jupiter warned that existing cash resources – around $7.5 million (€8.53m; £5.23m) – would at best eke out until the middle of the second quarter.

Tuesday saw the commencement of the disposals with the $8.5 million sale to NetRatings of its web ad-measurement unit AdRelevance. “It was a first step,” said Jupiter’s vp of investor relations Susan Hickey

According to the filing, Jupiter has retained financial adviser Robertson, Stephens to help it explore financial options. But: “If adequate funds are not available when required or on acceptable terms, we may be forced to cease our operations . . .” warned the company. Its auditor, Ernst & Young, has also expressed “substantial doubt” at Jupiter’s ability to continue as a going concern.

Data sourced from: The Washington Post Online; additional content by WARC staff