Phase2Media to Close, Sources Say

Jun 29 2001

EXCLUSIVE Internet ad sales firm Phase2Media, which represented some of the most prominent Web companies, is shutting its doors, ad industry and client sources said late Friday.

The firm, based in New York City, sold advertising space for a high-profile list of clients, including News Corp.'s Fox, the National Hockey League, Prodigy Internet, ELLE.com, Britannica.com and Maxim Online.

The agency's closure underscores the dismal state of the advertising industry. As the newest form of media being sold, interactive ad sellers are having an especially hard time doing business.

In a written statement, Phase2Media said it was planning only "significant staff reductions." However, two of its largest clients said they were notified that the agency, which opened in April 1999, is closing. Phase2Media laid off 30 percent of its staff less than a month ago.

Earlier, Phase2Media pulled an S-1 filing, required for companies planning to sell shares on public markets, from the Securities and Exchange Commission.