Pop-Under Pioneer Bankrupt

Share this article:
X10 Wireless Technology Inc., a pioneer of pop-under advertising on the Web, filed for Chapter 11 bankruptcy protection, listing more than $10 million in debt.


The Oct. 21 filing came a day after the Kent, WA, Webcam company lost a lawsuit brought by three California brothers who claimed X10 stole their technology for serving pop-under advertising. X10 was ordered to pay $4.3 million in compensatory damages, and a jury was to consider punitive damages Oct. 29.


X10 rose to prominence in 2001 by pioneering pop-under advertising, often cited by Internet users as one of their least-favorite aspects of the Internet. The company's surveillance camera ads became so ubiquitous that in June 2001 X10.com rose to No. 4 on one Internet measurement service's list of the most-visited Web sites.


In its bankruptcy filing, X10 estimates assets of $1 million to $10 million, and debt of $10 million to $50 million. Chief among its creditors is Advertising Banners.com, the company operated by the men who sued X10, which is owed $3.9 million. Other big Internet names made the creditor list, including Google, Yahoo and Microsoft.


Under Chapter 11 bankruptcy protection, a company can continue its daily operations while it reorganizes its finances. A bankruptcy court must approve all major business decisions.


X10's bankruptcy attorney was unavailable for comment.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

How Amazon Ads Might Change the Game

How Amazon Ads Might Change the Game

Will the Great Recommender introduce "pretargeting" to the menu? Is it destined to become the King of Conversion? Or will its ad business simply settle in between Google's and Facebook's?

Less Than Half of Marketers Say the C-Suite "Gets" Digital

Less Than Half of Marketers Say the C-Suite ...

The long road to digital marketing leadership starts with organizational alignment, a study finds.

Candidates Hook Into Twitter

Candidates Hook Into Twitter

A digital agency for politicians puts the power of presidential electioneering into the hands of Congressional campaigns.