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

NEWS STORY

Zango Shuts Down Operations

Zango Shuts Down Operations
Get XBIZ News
Apr 21, 2009 3:00 PM PDT    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 !

LEGAL PERSPECTIVES

Legal Protection for Amateur Shoots

Any adult industry professional who creates video content with actual first-time amateurs will come to an early knowledge that later performer regret is commonplace. Recognized performers who regularly... More »

Legal Options to Address Pirated Cam Performances

Many webcam performers have experienced a new trend in online piracy — the illegal recording and publication of live webcam performances. The “business model” is disturbingly simple:... More »

A Retrospective on the Adult Industry’s Tall Climb

As certainly the oldest member of the current adult-industry Fourth Estate, and having written for many adult publications, some of which no longer exist, I write this in the first person which, if you... 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 Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

eroFame

Oct 05 - Oct 07
Hannover, Germany

EXXXOTICA Edison

Nov 04 - Nov 06
Edison, New Jersey

2016 Inked Awards

Nov 05 - Nov 05
Edison, New Jersey

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA
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!