DeepCanyon Gets Deep-Sixed
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Hewlett-Packard Co. said it will close the doors of DeepCanyon, its Internet marketing resource subsidiary this Thursday.
As a result, 35 people will lose the positions at the giant firm. However, HP spokesman Dave Berman said the employees were informed ahead of time.
"Most of them have identified job opportunities in the Seattle area," Berman said told InternetNews.com Tuesday.
Launched in September 1999, DeepCanyon was forged to assist marketers in the creation of marketing strategies and business plans. DeepCanyon markets content from many leading market research companies. In addition, it provides primary research, its own marketing information and other marketing and competitive analysis tools.
The firm was spun out from its parent last December, but failed to secure second round funding. Berman declined to say when HP realized the small firm was facing financial troubles.
The firm's leadership 1-2 punch of President and Chief Executive Officer Lisa Wellman and Executive Producer Jeanne Romano are unlikely suspects for DeepCanyon's demise -- the pair boast 30 years of experience between them.
The spinoff's downfall is perhaps more closely linked to the large quantity of marketing and advertising start-ups to hit the market in the past few years -- including such successful firms as LifeMinders.com and L90 Inc.
The pronounced dry-up of venture capital funding, which has plagued the young e-business market in recent months, also likely contributed to the failure.