Gratis Internet, the company that started with Free Condoms and earned their mark giving away Free Ipods, are closing up shop.

It appears that the lawsuit filed by Elliot Spitzer, New York state Attorney General, affected them tremendously. Being an ex-employee of this company, I saw this coming, primarily due to the fact that they hired a COO from a completely different industry, who after 3 months, still didn't understand how the company generated revenue! Just goes to show, a business model based on breakage, will eventually break.

All of my condolences go out to my ex co-workers, half of which were laid off this week. Peter Martin, one of the co-founders left the company last week.

Another internet saga comes to an end.

Gratis R.I.P.

PS: Here is supporting documentation. Besides the fact that half off the staff has been laid off, and "more cuts coming" whispers are heard through the galley, the lawsuit filled against Gratis request at minumum $500 per New York residents email address in their database. As NYC was one of their top cities in a database of over 150 million email addresses, you do the math.