Stan Lee Media shuts its doors

Back - Index - Submissions - - What is RSS? Date: Dec 19, 2000 Source: Variety / Yahoo! News Submitted By: f sampson By Carl DiOrio HOLLYWOOD (Variety) - Stan Lee Media, which has struggled with cash-flow problems and a plunging stock price, has pulled the plug on operations indefinitely. In a brief press release issued late Friday, execs of the Encino-based company said the Internet-animation concern could be revived if efforts to secure new financing succeed. But they acknowledged such efforts have proven difficult as the company's share price hit penny-stock levels in recent trading sessions. The stock had traded just above $10 as recently as summer and held close to $9 for much of the fall. But rumors circulated on Internet chat boards over the past several weeks that Stan Lee Media was running out of cash. An exec initially denied the rumors, then a couple of weeks ago the company announced a $2 million bridge loan to keep things running until a $40 million equity financing was finalized. But the anticipated financing, whose details were never released, did not materialize; talks apparently hit an impasse as the company's stock tanked. Founded by legendary comic-book scribe Stan Lee, the company has attempted to build Webisode franchises that could migrate onto other distribution platforms. Producer Mark Canton has been developing a feature film from Stan Lee Media's ``7th Portal'' franchise, and it was not immediately clear how the company's closing might affect that project. Stan Lee Media also has been active in creating animated characters and Web sites based on entertainment figures such as pop-music stars The Backstreet Boys and Mary J. Blige. ``We still believe in the fundamentals of our business plan and are proud of the work we have accomplished to date,'' CEO Ken Williams said in a statement. The company, which employed 140 people, said it has laid of ``substantially all staff'' except for key personnel who will continue to hunt for financing. Execs also indicated they would investigate unspecified other options, presumably including the sell-off of assets should financing for continued operations remain unavailable. Stan Lee and then-partner Peter Paul, a Los Angeles-based entrepreneur, founded Stan Lee Media 22 months ago, following the 77-year-old Lee's decades of association with Marvel Comics. The company went public in July 1999 by acquiring a publicly traded shell. Its equity backers include Netcaster Shockwave.com, which holds a 6% stake and distributes some SLM Webisodes. Reuters/Variety REUTERS Comment on this item. Next Item: On-air stunt: "Insane Blaine" has pulled his first and last Prev Item: N-SYNC and Backstreet at Superbowl