Home > News > Zango Shuts Down Operations • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Zango Shuts Down Operations

Zango Shuts Down Operations
Get XBIZ News
XBIZ Research
Will Google uphold its commitment to 'Freedom of Expression' when it comes to organic adult search results?
Yes
  32.09%
No
  67.91%
Out of 187 votes. Results based on votes submitted by members of XBIZ.net social network.
Tuesday, Apr 21, 2009    Text size: 
SEATTLE — Adware maker Zango has shut down its operations.

XBIZ emails and calls to Zango’s Seattle office went unanswered through late Tuesday 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 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.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

QUICKBITE FEATURES

The Semenette: When a Sex Toy Is More Than a Sex Toy

Over the course of time, there have been thousands of sex toys that were created because of a need, a demand for something that hadn’t existed before or for something that just didn’t have... More »

Dev Depot: MatchHeight, Make the Height of all Selected Elements Equal

It seems like a simple enough task, but it is one that has long frustrated web designers: creating a matrix of same sized elements, each (perhaps) containing a different amount of content, so that this... More »

Falcon: Over The Edge

From the beginning, the Falcon man has been the clean-cut All-American, evolving from the smooth beach boys of the 1980s to the jocks of today. He’s always had a dirty mind, but the studio has decided... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

Sexpo

Aug 01 - Aug 03
Sydney, Australia

QWEBEC Expo Montreal

Aug 15 - Aug 17
Montreal, Canada

Asia Adult Expo

Aug 28 - Aug 30
Macau, China

CatalystCon West

Sep 11 - Sep 14
Los Angeles, California
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!