NebuAd, death imminent


adotas_small_011.jpgADOTAS — The behavorial targeting company that all other BT companies use as an example of what not do is closing shop.

According to court documents, NebuAd, a deep packet inspection company, has been winding down its affairs since last summer. NebuAd laid off nearly all of its officers and employees, it once employed over 60 people, and closed its office in Redwood, California and moved to Foster. Operating with skeleton staff, who will all shortly be fired as well, the company will soon “cease to exist as an ongoing concern,” the documents state.

The Federal Trade Commission, as part of its ever growing review of online behavorial targeting, held hearings on the practices of NebuAd, which had technology that allowed it to capture consumers’ online behavior by looking at the traffic that passes through their ISP.

A lawsuit was filed against it, alleging that the company violated a federal wiretap law, privacy laws and computer fraud law; they are requesting damages in addition to an injunction that would force NebuAd to erase any information it has about them. The suit alleged that NebuAd violated privacy by buying information on the surfing activity of subscribers to various ISPs.

According to the WSJ, funds Menlo Ventures and Sierra Ventures invested more than $30 million into NebuAd.

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