According to The Wall Street Journal, Local.com filed Bankruptcy on Tuesday, June 24th, saying it stumbled after a sudden drop in traffic in the first quarter of last year (see chart above).
Irvine, California-based Local.com is a website used to search for local businesses…In 2014, the company received 14 million monthly visitors and $83 million in advertising revenue. Local.com had 48 employees and patents for the way it generates search results for consumers who are looking for businesses, products and services by geographic area.
I wonder if Local.com ever figured out what led to the significant drop in its web traffic? Was it the result of one of Google’s infamous ‘updates’? Was it ‘black hat’ SEO techniques or something to do with a bad backlinks?
Local.com officials didn’t say how much money might be offered for the company or whether that amount could fully repay its debts, including roughly $6.6 million owed to Google and $8.7 million to lenders through U.S. Bank.
While the publicly traded company (LOCM) once sold at $2.23 per share, as of yesterday it was a $0.035 per share.