In a post about the sale, founder Mike Orren said the site had run out of money months ago and staffers were working for free.
You (hopefully) know that we are a tenacious, dedicated lot. What you probably don't know is that while still working on our longer-term plans, we ran out of cash back in February. This group continued to work tirelessly to build this service from then until June without a nickel of pay. I'm a little verklempt even as I type this -- This amazing group stuck with this for nearly four months without paychecks (and a couple months prior knowing that the dry spell was impending).
These are not rich kids, or people with trust funds or cash cows at home. These are real people who struggle to make rent and keep gas in the car. And they stuck in -- even when success was not assured, and even while we took our time to make sure we were making the right partnership.
There have been many, many days in the past year that I personally have been tempted to chuck it in -- not because I didn't believe in what we were doing and not because I didn't think the business was on the right track -- but because it was so hard trying to build a battleship out of plywood. And then I'd come into the office and listen to the team trade stories of evading landlords and where to buy Ramen noodles, and I knew, for the moment, that we would make it.
I'm glad the site was sold rather than taken down. Pegasus' "Daily You" product, a dynamic personalized approach to delivering the news, is truly innovative and should become a model to larger sites. CNN.com has started something similar.
For those of us not familiar with the Fisher company, find comfort in knowing that Mike and team will stay on staff, ensuring Pegasus continues its individually tailored approach to covering the news.