Walker Digital Sheds 100 Jobs

The priceline founder's incubator cuts ties with three start-ups.

Author:: Katherine Hobson
Publish date:: Nov 21, 2000 5:17 PM EST

Jay Walker's

Walker Digital

, the incubator from which the ailing

priceline.com

(PCLN)

sprang, has laid off 100 employees and will stop funding three start-ups.

Spokesman Kevin Goldman said that after "an extensive internal review," the company is firing 100 of its roughly 300 employees and ending its support of three early-stage companies with no revenue:

HighCircle

Atlantis

and

Pulse

. He said the company will focus on its invention laboratory, the licensing of its intellectual property portfolio, and the commercialization of several businesses already in development. He wouldn't say how many. Jay Walker will take over for Vikas Kapoor as chief executive.

Nor would Goldman comment on what prompted the cutback, though the

Industry Standard

reported that a third round of financing led by

General Atlantic Partners

fell apart over the weekend.

Walker Digital is privately held, with a list of investors including General Atlantic, investment bank

Allen & Co.

and Paul Allen's

Vulcan Ventures

, which has also invested in

TheStreet.com Inc.

(TSCM)

It's not been a good few months for Walker: priceline delivered

unimpressive third-quarter results, its CFO quit and its

WebHouse Club

licensee

shut down. That all prompted a stock swoon and questions about how many applications priceline's name-your-own price model really has. Shares now trade at $2.31, down from a 52-week high of $104.25.