Internet researchers Webmergers.com has announced that a
provisional total of 54 internet firms folded in May. This is only
one less than the figure for April and indicates the continued
decline of internet enterprises. The first signs of internet
initiatives falling victim to the changing economic climate were
noticed early last year, but the numbers of firms being forced to
shut down has risen dramatically since then.
The report states that at least 493 substantial internet
companies have shut down since January 2000, but that over half of
those did so during the first five months of this year. Almost 50%
of these firms were involved in e-commerce ventures, whilst the
remainder operated in other internet related fields. These included
internet consulting firms, internet access providers and
application service providers.
The results for May show that the rate of shut downs is unlikely
to fall in the coming months, although some struggling dot.coms may
still benefit from the use of financial restructuring services.
