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Spitzer Chasing Down Spyware

April 29, 2005

A number of a:c readers have commented that there is a disconnect between our post that VCs investments in spyware/adware companies are under duress and a few days later we learned that ABS Capital had invested $20M in adware firm WhenU. We rarely second guess VCs, but believe that ABS blew it.
To all the woes that bedevil adware/spyware, add Eliot Spitzer. The New York Attorney General announced that he is suing the adware distribution practices of Intermix Media. As a result, the stock price of Intermix has halved in a few days. We wondered why Spitzer chose to go after Intermix among all possible companies. It is after all a distributor of adware, rather than a maker/operator, and it has a reputation for scaling down its adware distribution. We suspect that Spitzer thought it would be effective to go after a publicly-traded company where the repercussions would be obvious. And by going after the distributors, he is hoping to make a dent in the sector by eliminating major sources of access to adware installations.
Read – New York Sues a Marketer on Use of Internet Spyware (NY Times)
Read – No Exit – Malware Is A Bad VC Investment (The a:c)

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3 Comments leave one →
  1. June 21, 2006 8:47 pm

    Edmonton dominated the Carolina Hurricanes on Saturday night and the 4-0 margin in Game 6 makes it hard to imagine the Oilers not hoisting hockey’s Holy Grail above their heads in less than 48 hours. And it would not come as any shock to see defenseman Chris Pronger, who had another 31-minute night, take the honors for the Conn Smythe Trophy as the playoff MVP.

  2. June 22, 2006 7:32 pm

    Edmonton dominated the Carolina Hurricanes on Saturday night and the 4-0 margin in Game 6 makes it hard to imagine the Oilers not hoisting hockey’s Holy Grail above their heads in less than 48 hours. And it would not come as any shock to see defenseman Chris Pronger, who had another 31-minute night, take the honors for the Conn Smythe Trophy as the playoff MVP.

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