Last year, the company revealed that its advertising revenue had collapsed and it had to restate revenues for 2001 and might remove as much as $95 million in sales it had booked. The inflated revenue actually derived from so-called barter transactions, in which swapped advertising on its site was traded for deals placing its own ads on other web sites.
The company named W. Michael Long, former chairman of Internet health site WebMD, as its new chairman and CEO, replacing Stuart Wolff, a co-founder of Homestore.com, who will be stepping down. Wall Street responding skeptically as Homestore.com's stock fell 31% yesterday, falling $1.14 to close at $2.46 per share on Nasdaq when it resumed trading after being halted for two weeks.
Long said the company will increasingly focus on subscription services going forward, although it will continue to court advertisers as well.
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