The Motley Fool Previous Page Last Breaths of [News] August 6, 2001

By Bob Bobala (TMF Bobala)

The poster boy for both Internet success and excess, (OTC: TGLO) announced Friday that it was closing its online community business and significantly cutting back its online game operations. That doesn't leave a whole lot left, and accordingly the company laid off half of its already-reduced staff and closed its New York headquarters. It plans to move its 60 remaining employees to a smaller location by mid-August.

Ah, how ideas of such grandeur can so quickly turn to dust. With a name like, you know twentysomething co-founders Stephan Paternot and Todd Krizelman were thinking big when they started the company in 1994 and shepherded it through six rounds of both private and public financing to the tune of nearly $200 million.

The company went public on Nov. 12, 1998 with an initial offering price of $9 -- or a split-adjusted $4.50 -- per share. Shares rose more than 900% that day before closing up 606%, at $63.50 -- the largest opening-day gain of any IPO in U.S. history up to that point. (It was eventually outdone by VA Linux