Salon Strikes Deal on Rent With Landlord
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SAN FRANCISCO — Online magazine publisher Salon Media Group Inc. on Monday disclosed that it has renegotiated its headquarters lease after getting sued for falling behind on its rent.
The San Francisco-based company struck a deal with its landlord late last week that will reduce its monthly rent from $70,000 to $21,000, according to documents filed Monday with the Securities and Exchange Commission.
As part of the deal, Salon will forfeit a $400,000 deposit and rent just one floor of offices instead of the two floors covered in its previous lease. The landlord had been seeking $300,000 in damages, Salon said.
The lower rent still might not be enough to give Salon a new lease on life.
Since its 1995 inception, Salon has piled up losses totaling $82.3 million, including a $5.7-million deficit in its most recent fiscal year ended March 31.
To boost revenue, Salon has been charging people to read its once-free online magazine. Salon had 62,000 subscribers as of March 31.
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