The merger agreement between L90 Inc. and eUniverse has been terminated amid a shakeup of top L90 management.
John C. Bohan, the president and CEO of L90, has resigned. The firm’s CFO, Thomas A. Sebastian, has been placed on administrative leave.
L90 cited the pending Securities and Exchange Commission investigation into its financial records, and the uncertainty as to when the probe would be completed, as the reasons for the termination. The firm revealed in February that it was under scrutiny by the SEC.
One month earlier, L90 had announced that it would be acquired by eUniverse in a cash deal worth up to $55 million.
Mitchell Cannold has been named to replace Bohan and to serve on the company’s board of directors. Bohan also resigned his post on the board. Most recently, Cannold worked as COO for Space.com, a multi-media company dedicated to space and space related content.
“I recognize the immediate challenges facing L90, but I also see tremendous potential for the company,” Cannold said in a statement.
As part of the management changes, the company has hired Steven Kantor as vice president of finance.
L90 lost a broad member earlier this month when Mark Roah, a founder of the company, resigned for personal reasons.
The Los Angeles-based direct marketing company said it did not intend to fill the vacancy.
L90, an Internet advertising firm, offers ad programs, opt-in e-mail, e-mail newsletters and a suite of digital marketing tools. Last year, L90 acquired Novus List Marketing, a Valhalla, NY-based list management company.
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