“Red Hat quietly has scaled back its plans to create a Linux and
open-source news site, a setback for the company’s strategy to
diversify its revenue streams and create a dominant Linux Web
site.”
“Red Hat launched the site last year as part of its plans to
bring as many visitors as possible to the company’s Web site. The
site, called Wide Open News, was envisioned as more than a public
service for open-source software. Red Hat planned to create a
destination for all things Linux and to earn revenue through ad
sales, software sales and leads on service contracts.”
“On Friday, though, the company laid off three of the four Wide
Open employees and transferred the fourth to another position, said
Walter McCormack, general manager of Red Hat’s overall Web
site.”
“The Wide Open site will remain on the Web, but in a less
ambitious form. The site will be populated with stories from a
handful of syndicated news partners, McCormack said. Those partners
already provide about 80 percent of the stories posted to the site.
Salon.com, one of the partners, saw its stock jump as much as 90
percent when it became a content partner.”
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