Underground Online Networks pinkslipped a third of its staff on Friday, around 70 employees, in what company said was an effort to lower its overhead and conserve cash. Similar to IGN.com, company hosts an online network of 350 Web sites revolving around animation, music, games, wrestling, television and films; target aud is Gen Y males. An ad- and e-commerce based business, UGO also offers a professional-services unit for Netcos.
In December UGO secured its fifth round of financing with $10 million from DLJ’s Global Retail Partners and Missouri-based Gryphon Holdings, which had invested in UGO throughout its previous rounds. Company raised $58 million in its last four rounds and has overall annual revenues of $15 million. Earlier investors include Liberty Digital, J.W. Seligman, Vivendi Ventures, Chase Entertainment Group and George Soros. Fifth round of financing was to fund company until it broke even at the end of 2001, UGO prexy-CEO J. Moses said at the time.
Execs at UGO declined to comment on the layoffs.