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Nick Denton is hunkering down, it seems. The Daddy of Gawker Media is reducing headcount and offloading two blogs, having determined that “it is time for a perversely countercyclical move”.

What does he mean by that? He means it is getting harder to make money from blogging, which was never especially easy in the first place.

Gawker Media launched four years ago, when it was far from cool or sensible to start up a consumer-focused web publishing business. Online advertising back then was something of a joke, but gradually marketers have been spending more on display ads and sponsorships, and Gawker Media has profited from that.

But now we're in 2006 and Nick reckons there are five key reasons why he’s been forced into a strategic rethink.

The two blogs being sold are Sploid (a tabloid-style news site) and Screenhead (a BoingBoing-esque world-of-the-weird site). You can get in touch with Gaby Darbyshire if you want more information on the bidding process.

What does this mean for blog networks? If Gawker is downsizing, then can we assume that AOL paid too much for Weblogs Inc?

Chris Lake

Published 3 July, 2006 by Chris Lake

Chris Lake is CEO at EmpiricalProof, and former Director of Content at Econsultancy. Follow him on Twitter, Google+ or connect via Linkedin.

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