MEDIA-I: Media directors shun XS-Media as site closes

<p>XS-Media has closed, with many media directors claiming to have </p><p>never booked media through the business-to-business website, which went </p><p>under after burning USdollars 4 million in cash. </p><p><BR><BR> </p><p>The company failed to gain a second round of funding from venture </p><p>capitalists because scepticism about the site's viability was never </p><p>really resolved. </p><p><BR><BR> </p><p>Paul McNeill, chief executive officer XS-Media, said: "We were talking </p><p>to some of the region's top venture capital funds but the harsh truth is </p><p>there is not a lot of entrepreneurial investment cash available right </p><p>now." He said many venture capitalists are trying to make up for last </p><p>year's losses. </p><p><BR><BR> </p><p>"Without an immediate injection of funds the company had no choice but </p><p>to drastically wind down its operations to avoid running out of cash </p><p>altogether," he added. </p><p><BR><BR> </p><p>But many media buying houses claim to have never booked media via the </p><p>website xs-media.com. Adrian Smith, executive director of The Media </p><p>Edge, said the news and gossip section was popular but no media buyers </p><p>in his office used it to book media. </p><p><BR><BR> </p><p>See analysis, p 24. </p><p><BR><BR> </p>