Ziff Davis Media, the parent company of game websites and magazines such as 1UP.com and Electronic Gaming Monthly, is struggling to keep itself from sinking further into the mire of red ink.
It announced that it missed an interest payment on its huge debt and is now meeting with the debt holders to try to work out a deal to payoff the $390 million it owes.
Ziff Davis has been trying for over a year to patch up the hemorrhaging of cash from its coffers and is in the midst of restructuring to keep everything afloat. Josh Young, the new CEO of Ziff Davis, tried to put a sunny side to the dark clouds hanging over the company by saying:
"Operationally, we’re in very good shape, but we still have debt that was put on the company when it was a very different scale." (Did anyone understand that? If clarity is a factor in them getting out of the hole, this probably isn’t the way to do it).
Ziff Davis currently owns three magazines, including EGM and Games for Windows and 15 websites. In its heyday, ZD employed over 1,200 individuals. Now the total staff is down to approximately 290.
