The on-line games site Freeloader.com that let users download games
for free, relying on advertising revenue, will be closed down. The
announcement yesterday wiped 78% off the share value of its
AIM-listed owner, Pure Entertainment Games.
The 750,000 registered users of the games site submitted their
personal details and preferences and clicked on pop-up adverts in
order to play the games for free. In December last year, Pure’s CEO
Bob Dewar said he expected the company to reach profitability ahead
of its target.
However, the company yesterday said that the reduced spend on
internet advertising coupled with the need to expand overseas to
break even forced closure of the Freeloader.com site with a
consequent loss of around 40 jobs. In a statement, it added that
rescue talks failed and it did not see a new fundraising effort as
a realistic option in current market conditions.
The company is reported to have enough cash to pay off outstanding
debts.
