Zango Shuts Down Operations

SEATTLE — Adware maker Zango has shut down its operations.

XBIZ emails and calls to Zango’s Seattle office went unanswered through late Tuesday after The Register reported that the company was forced to pull the plug on its business after it was left unable to pay off its debts.

The report further said that video search engine firm Blinkx purchased a portion of its assets from the company.

"The bank foreclosed on Zango and Blinkx purchased some technical assets from the bank, including some IP and hardware, which constituted about 10 percent of Zango's total assets," a Blinkx spokeswoman said.

Zango’s closure may mean the end of the adware business model. Claria, formally Gator; WhenU; and DirectRevenue all have closed up shop in recent years.

Zango started off as 180 Solutions in 2004, raising $40 million from Spectrum Equity Investors and growing to employ more than 230 workers at its peak.

The company has faced accusations of deceptive installation practices and problems in removing its software once installed led to a lawsuit by the Federal Trade Commission.

Zango settled the suit in November 2006, agreeing to pay a fine of $3 million without admitting guilt. The firm said that its problems were due to rogue affiliates.

The company currently is embroiled in a $750,000 lawsuit in California, where Epic Cash has asked a court to rule against the adware maker and AdultFriendFinder.

Zango and AdultFriendFinder are accused of "diverting traffic away from Epic Cash sites and converted Epic Cash’s business to their benefit,” by taking advantage of plaintiff’s marketing efforts, presumably when potential consumers are inputting certain keywords or searching for specific sites, which subsequently leads to Zango pop-up ads.

Ken Smith, Zango’s co-founder and former chief technology officer, said that Zango finished its life with a “fire sale” on his blog.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Streamster Launches 'Tip2Peep' Camera-Switching Feature

Live-streaming software provider Streamster has launched Tip2Peep, a new feature that allows viewers to switch between multiple webcam viewing angles by tipping the creator.

Tyler Wu Guests on Chaturbate's 'Sex Tales' Podcast

Tyler Wu is the latest guest on Chaturbate’s “Sex Tales” podcast, hosted by Melissa Stratton and Vanniall on the company’s “Camming Life” YouTube channel.

Fleshy to Launch Interactive Cam Site 'Eromote'

Male pleasure brand Fleshy has announced that it will launch an interactive, bidirectional cam site next month called Eromote.

XBIZ LA Show Introduces New 'Crib Crawl' Feature

XBIZ is pleased to announce that the 2025 edition of its flagship conference, the XBIZ Show, will debut a brand-new feature: Crib Crawl, offering attendees the chance to meet and greet representatives from leading brands and organizations in dedicated suites at the host venue.

Pre-Nominations Now Open for 2025 TEAs

The pre-nomination period for the 2025 Trans Erotica Awards (TEAs) is now open.

Byborg Invests $22.35M in PLBY Group

Luxembourg-based Byborg Enterprises SA is investing $22.35 million in Playboy parent company PLBY Group.

Supreme Court to Hear Oral Arguments on Texas AV Law in January

The United States Supreme Court has scheduled oral arguments for Free Speech Coalition's challenge to Texas’ age verification law to take place Wednesday, Jan. 15.

2025 XBIZ Exec Awards Nominees for Online Industry Announced

XBIZ is pleased to announce the nominees for the online industry edition of the 2025 XBIZ Exec Awards, set to be presented as part of the annual XBIZ Honors ceremony on Wednesday, Jan. 15 in conjunction with the XBIZ 2025 conference.

Project 2025 Leader Claims Big Tech Companies 'Deliberately Fuel Pornography Addiction' Among Men

Heritage Foundation president and Project 2025 leader Kevin Roberts published on Wednesday the text of a speech in which he persists with his past claim that “predatory Big Tech corporations” are “deliberately fueling pornography addiction” among young men.

FSC Petitions 10th Circuit for Review of Utah AV Dismissal

Free Speech Coalition (FSC) on Wednesday petitioned the United States Court of Appeals for the 10th Circuit to review a decision handed down earlier this month by a three-judge panel of the same appeals court, which denied FSC the right to challenge Utah’s controversial age verification law by suing state officials.

Show More