A tech firm that was once one of the Internet’s big success stories is shutting down. Recode reports that lifestyle publisher and ad network Mode Media informed its employees Thursday about the shutdown.
“It’s an abrupt end for a company that had previously cast itself as one of the Web’s biggest publishers, enjoyed a billion dollar valuation and planned on going public,” Recode notes.
The company began as Glam Media, featuring sites targeted mainly at women.
“Mode/Glam’s individual sites never commanded much media attention, but the company was able to boast that it commanded significant Web traffic, in part because of the network of sites it represented with ad deals but didn’t own,” Recode notes. “Earlier this year, comScore pegged Mode as the 10th largest digital publisher in the U.S., with 137 million visitors.”
The report adds: “One person familiar with Mode’s business says the company generated close to $90 million last year and had been projected to do more than $100 million this year. The timing of Mode’s shutdown is particularly surprising given that media companies traditionally generate most of their ad sales in the fall.”