RealTime IT News

theglobe.com Loses Co-CEOs

The founders of community site theglobe.com, Inc. have stepped down after seeing its stock fall into the single digits and experiencing wider-than-expected losses.

Stephen Paternot and Todd Krizelman said Friday they will step down as co-chief executive officers, with current Chief Operating Officer Dean Daniels taking the role of president. The search for a new CEO has begun, and is expected to be in place by the second quarter, the firm said. Paternot and Krizelman will remain on the board to focus on business strategy and new products.

The restructuring comes while the company struggles match the resources of competitors Geocities and Tripod, which were bought by Yahoo! (YHOO) and Lycos (LCOS) , respectively.

theglobe.com (TGLO) is a network of e-mail clubs and personal Web sites, where people form communities revolving around similar subjects.

Krizelman and Paternot founded the community site while they were students at Cornell University, and took the company public in November 1998. The stock's activity has been a roller coaster, rising more than 900 percent before tumbling down into the single digits. It was trading Friday afternoon at 7 15/16. Its fourth quarter earnings, released Thursday, indicated a loss of $16.2 million, or 60 cents a share, compared to $4.5 million, or 38 cents a share last year.