Big Changes Happening At 1up Network

On Wednesday, March 5, 2008 it was reported on numerous sites that Ziff Davis Media, parent company to the 1UP Network, filed for Chapter 11 in New York. What does this mean for one of the premier videogame media outlets?

Chapter 11 is a chapter of the US Bankruptcy Code. The word bankruptcy carries with it a heavy connotation and news of this announcement led to some concern and confusion among members of the 1UP community and fans of the weekly 1UP podcasts and 1UP Show as to the future of the site. Simon Cox, now VP of Content at 1UP, posted a blog recently to clarify some things and speak to the reasoning behind the move.

While filing for Chapter 11 may seem a bit ominous, Simon made clear that this is meant as a positive step for the network and that the 1UP staff is very devoted to the future of the site, planning not only great coverage but also significant upgrades later this year. Bottom line: Day-to-day, nothing is going to change—not for the worse, anyway.

Filing for Chapter 11 allows for the reorganization of a business when unsecured or secured debts are at certain, presumably debilitating, levels. It is not analogous to Chapter 7, which involves liquidation and the immediate cessation of all business activities—often what people think of when they hear the word “bankruptcy”.

Ziff’s objective is to lessen their debt and reduce the strain of repayments so more of their profit is available “to invest in building bigger, better, faster, stronger and better-looking websites and magazines”.

It sounds like there will be more developments in the coming months as things move through the legal process, but 1UP will not be going anywhere and it looks like this, along with their recent site upgrade and change in rating scale, are the public beginnings of some heavy planning to make the 1UP Network continue to grow and improve. Members of the community seemed to appreciate Simon’s candor on the issue.