So says SBJ (story behind pay wall): A sign of the times at AOL, where new chairman and CEO Randy Falco and the team are doing some belt tightening: AOL has stopped funding for Lat34.com, the action sports news and video website it helped establish last June as a JV with Fusion Entertainment. The site will seek new funding through another media partner or other investors, it says.
Staci adds: My SBJ subscription picked a bad time to expire. Back in now so can see the full story, which actually ran Feb. 19. The site has enough funding to survive until new investors come in but can’t delay the search for new funding. AOL maintains an equity position but that likely would be restructured. The issue doesn’t appear to be the site’s performance; it has an average of 400,000 monthly uniques and partnerships with ASPT Dew Tour and Burton Snowboards. SBJ says AOL wanted to divert the funds to new initiatives but between this and the decision we reported to cancel efforts to do a kids and teens JV, it’s beginning to sound like post-Miller AOL is JV averse.
Related: AOL, Fusion Team Up For Broadband Action Sports Channel Lat34.com, JV