With funding cut, Engage looks to sell media business

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Andover, Mass.--Engage Inc., the embattled online marketing agency, has cut 100 jobs. The move comes soon after its majority owner, CMGI Inc., announced that it would not renew or extend the company's $50 million conditional financing agreement. An additional 125 Engage media-related employees, meanwhile, are being notified that their positions will be eliminated if a sale of Engage's media business doesn't happen. Engage let 175 workers go last September. In a bid to stem the bloodletting, Engage said it is forgoing its media business for its software business, which the company believes is potentially more lucrative. "Given the continued dramatic downturn in the advertising industry, Engage cannot sustain this media business at the expense of the far more promising software business," said Tony Nuzzo, CEO.
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