January 14, 2008 5:09 AM
Is IncrediMail, IncrediFail?
Israeli email company, IncrediMail announced last week that Google has dropped the company from its AdSense program. According to TechCrunch, IncrediMail's stock dropped 40% and lost about 1/3 of its value on the Nasdaq in direct response to the news. The reasons for Google's suddenly ending the partnership is currently unknown, but IncrediMail may have "been dropped for fraud."
Last month, Zack Miller of BloggingStocks.com interviewed IncrediMail founder and CEO, Yaron Adler. One of Zack's questions for him was what the company's business model was, to which Adler responded that the company relies heavily on viral marketing (though it is not the main means).
This is probably not the viral marketing that Adler had in mind.
It's unlikely though that this is the end for IncrediMail and not just a relatively minor setback for it. Israeli VC Michael Eisenberg has an interesting take on this in a post on SeekingAlpha.com, as does Zack Miller's buddy, Aaron Katsman, on BloggingStocks.com.
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