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I know they had a lot of users, but I don't see how they were making money off the client and they had a lot of employees.

Maybe the spam thing was working for them but I don't think they would have folded if so.

Sure. They had way too much investment, way too many employees, and didn't seem to have much of a handle on making money by the looks of things.

It'll be spun as a success "Acquired by Google yay!", but seems a pretty resounding failure to me.

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