Ziff Davis Media Files For Bankruptcy
Today, officials from Ziff Davis Media, owner of several gaming press outlets like 1Up.com and Electronic Gaming Monthly, have announced the company is filing for voluntary bankruptcy. According to Gamasutra, they're doing this in order to get moving on their "restructuring plans," and the company hopes to break free of Chapter 11 by this summer.
In order to continue their normal daily operations, Ziff Davis says an "ad hoc group of shareholders" has set aside $24.5 million as it enters the Chapter 11 phase. As for the employees, who probably weren't too happy to wake up to this news, they may not be affected at all. The company has asked the U.S. Bankruptcy Court for the Southern District of New York "for permission to continue paying employee wages and salaries and to provide employee benefits without interruption." Let's hope that goes through, so all those Ziff Davis employees aren't suddenly sent scrambling for food stamps.
Last August, Ziff Davis revealed they were "exploring various options to restructure its debt,” and didn't want to court buyers for its game media group. Perhaps they had planned all along for Chapter 11 to be part of the solution, but regardless, most fans of the company's press outlets are hoping Ziff Davis will make a comeback."Operationally, we are making great progress," said Ziff Davis CEO Jason Young. "As a result of our employees’ hard work, we ended 2007 on a strong note. We matched audience growth with impressive digital revenue expansion. And while the print market continued to be challenging, we continue to be print category leaders in the markets we serve."
3/6/2008 Ben Dutka