Posted by: rcieri | May 1, 2009

JuicyCampus shuts down, lack of revenue spells end

February 11, 2009

by Rachel Cieri

Karma. It’s how some are describing the demise of one of the most controversial websites to hit cyberspace.

Online gossip phenomenon was shut down Thursday after a year and a half of spreading college rumors, reportedly due to a lack of funding from advertisers.

“In these historically difficult economic times, online ad revenue has plummeted and venture capital funding has dissolved. JuicyCampus’ exponential growth outpaced our ability to muster the resources needed to survive this economic downturn, and as a result, we are closing down…” CEO Matt Ivester said in a letter to the Web site’s users Wednesday.

The more than two million posts that has supported will no longer be available to the public, but regular users need not worry. Their IP addresses are still safely under the watch of Lime Blue, Inc.,’s parent company, and they will not be released unless summoned by a “lawful supeona.”

Despite claims that the shutdown is due to the nature of this site’s sometimes unsavory content, company representatives maintain that legal issues played no role in the financial troubles.

“JuicyCampus’s services and policies have always been well within the law,” reads a “Frequently Asked Questions” post on the site’s official blog.

JuicyCampus also refutes rumors that its advertisers pulled their funding from the site and attributes its monetary losses to the state of the economy.

Online ad sales have been dipping across the board, and, according to, this follows the trend set in 2008, with ad sales at their lowest since 2001. Even Super Bowl commercials took a hit this year, with companies like E-Trade airing one ad instead of its usual two.

JuicyCampus maintains that it is not shutting down from being banned at too many campuses, either.

“Any revenue lost as a result of the campuses that banned us was negligible,” company representatives said in the FAQ.

Multiple smaller, private colleges and universities have banned the site, but Tennessee State University remains the only public university to have it blocked from its servers.

As of Thursday, the former gossip Web site has become a web domain for sale.

Although, Ivester said that he has no plans to put the site back online anytime in the immediate future, he remains optimistic.

“While there are parts of JuicyCampus that none of us will miss – the mean-spirited posts and personal attacks – it has also been a place for the fun, lighthearted gossip of college life. I hope that is how it is remembered,” Ivester said.

Whether or not that will be the case has yet to be seen.


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