Buzz Media slashes 50 jobs after raising money

Buzz Media said it will cut 50 jobs, or about 20 percent of its 250 workers, as the money-losing site looks to streamline its operations.

The belt tightening apparently convinced its Silicon Valley backers to pump more money into the Web publisher, which is still unprofitable after seven years of operation.

Buzz Media runs a network of pop culture websites, including Fanpop, Stereogum, Buzznet and Spin. It would seem to be in a sweet spot, with close to 40 million monthly unique visitors and a top 40 ranking, according to comScore.

But critics point out that its visitors are fleeting, with the average time spent on many of its sites less than 120 seconds.

"They appeared to be inflating audience numbers and not investing in editorial," said one critic.

"My focus is on growing our audience, that's where I want to focus our energy," said CEO Steve Hansen, who replaced longtime chief Tyler Goldman in a shakeup late last year

The new round of funding, which was rumored to be in the works for a while, finally came through this month with $10 million from original investors including Anthem Ventures, Intel, NEA, Red Point and Sutter Hill. The company also secured $5 million in debt financing.

There were signs that cash was tight. Buzz Media was sued in Los Angeles Supreme court for non-payment of ad commissions by Radaronline, a joint venture of American Media and Ron Burkle's Yucaipa Cos.

"We are current with Radar," Hansen said after Buzzmedia recently sent a check for $177,000 to Radaronline.

With the fresh cash fusion, the company has raised at least $40 million from investors.

Hansen said the company turn a profit this year with revenues hitting $40 million, up 20 percent over last year.

"We'll be profitable this year," said Hansen. "Let's put it this way: we better be."

kkelly@nypost.com

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