Politico: The fall of Salon.com

[JHB]

14. Scroll all the way down to this part (a.k.a. Follow the Money)

It seems there is a sense of urgency about Salon’s future. Hambrecht is in his early 80s, and Warnock is 75. Because Salon has run deficits for almost every quarter since it was founded, the company has relied on regular interest-free cash advances from Warnock, chairman of Salon’s board, and Hambrecht, a board member. From Salon’s founding until the end of 2015, the most recent data available, Warnock and Hambrecht have given the company nearly $20 million in cash advances, and Warnock also personally guaranteed a $1 million line of credit.

“You have two founders who are aging who were writing six-figures checks every year to cover operating costs,” one person close to the company said.

If Salon’s continued existence remains dependent on them, the company could be in a precarious position. People close to the company are not sure whether Warnock’s heirs will be as willing to continue covering the Salon’s expenses as he has been over the years. For years, staffers and Salon readers assumed that Warnock, a staunch First Amendment supporter, backed the site financially because of his commitment to journalism and to Salon’s mission.

Read more: http://www.politico.com/media/story/2016/05/the-fall-of-saloncom-004551#ixzz4A3Xe4i32