News In Brief

June 9, 2000

As part of an emerging shakeout of Internet news sites, the online magazine Salon.com said it would slash its operating budget by 20 percent and lay off 13 of its 140 employees. Like many other Web-based companies, Salon.com has struggled to reach profitability, posting a net loss of $6.2 million for its fiscal quarter ending in March. Earlier this week, APBNews.com, which focuses on crime and the justice system, dismissed all 140 staffers after running out of money. Last week CBS laid off 24 people from its Internet division. TheStreet.com, a site for financial news and analysis, is being revamped while it also wages a legal fight with Fox News.

A new telecommunications company that will have a capitalization of $3.5 billion and will target the fast-growing South American market was announced jointly by Bell Canada and Telmex (Telfonos de Mexico). The partners also said they have offered San Antonio, Texas-based SBC Communications Inc. the opportunity to buy a 25 percent stake in the project and are expecting a decision by late next month. The new company plans to offer broadband, wireless, and Internet services primarily in Brazil, Colombia, and Venezuela. The mobile wireless customer base alone in South America is projected to grow by more than 15 million over the next three years.