The company faces possible delisting after its stock stays in the doldrums for more than 30 days.
Despite a booming market for paid search, LookSmart's stock has lingered below the $1 mark for more than 30 days, prompting Nasdaq to warn the company of possible delisting.
To continue to be listed on the exchange, LookSmart's shares must trade above $1 for at least 10 of the next 180 days. The bad news comes as other players in search, such as Google and Yahoo, report strong growth.
Potential remedies for LookSmart include a reverse stock split and a move to the Nasdaq Small Cap Market.
Despite a boom in paid search ad spending, LookSmart has never quite recovered from losing MSN as a distribution partner back in October 2003.
More recently, the company said it failed to pursue the types of advertisers it would need to capitalize on search volume. That disappointing news followed the appointment of a new CEO and a management shakeup -- changes aimed at reversing the company's fortunes.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.
Hong Kong, May 5-6, 2015
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT