What's the Deal with eCompanies?

from the hmmm... dept

An LA Times article today questions whether or not the high profile LA incubator eCompanies will survive. In the article they include quotes from folks at eCompanies saying everything is going great. It's a bit strange, then, to see only hours later an announcement that their first investment, eParties, is now laying off most of the staff and selling off the pieces. I guess, they're probably talking about Business.com which launched today and which they spent a record $7.5 million for on just the domain. Seems like a nice idea, but I'm not sure it's really a real business. Besides, they're going to be competing head on with Yahoo!. Not exactly a position I envy.