Editing ArsDigita (section)

===Dissolution===
Approximately 180 ArsDigita employees were hired at the company's peak, but with the [[Dot-com bubble|crash of the dot-com economy]], many of ArsDigita's clients went out of business. Others cut back heavily on their technology initiatives.  The weight of payroll and offices in [[Cambridge, Massachusetts|Cambridge]], [[Berkeley, California]], Washington D.C., and [[Ann Arbor, Michigan]] soon overwhelmed the company.  The Ann Arbor office was closed in September, 2000, with the other offices following over the next few months. 

ArsDigita took $38 million in [[venture capital]] investment from [[Greylock Partners|Greylock]] and [[General Atlantic]] in 2000 to provide working capital for expansion of its product line. Greenspun said<ref name=Greenspun-MIT/> the venture capitalists staged an internal coup to drive the founders out of the management structure and installed incompetent professional managers with little idea of how to run a software products company, resulting in the collapse of the company  and a lawsuit between the founding shareholders and the venture capitalists over control of management.<ref>{{cite web|url=http://unicast.org/stuff/arsdigita/ |title=Index of /Stuff/Arsdigita |access-date=2007-09-16 |url-status=dead |archive-url=https://archive.today/20120717003826/http://unicast.org/stuff/arsdigita/ |archive-date=2012-07-17 }}</ref> Michael Yoon, who was an ArsDigita employee at the time, said ArsDigita had other management problems as well.<ref>{{Cite web|url=http://michael.yoon.org/arsdigita.php|title=ArsDigita: An Alternate Perspective|date=2013-01-15|archive-url=https://web.archive.org/web/20130115123445/http://michael.yoon.org/arsdigita.php|access-date=2019-09-27|archive-date=2013-01-15}}</ref> The lawsuit was settled out of court with Greenspun receiving $7.6M.<ref>{{Cite web |url=http://www.eveandersson.com/arsdigita-history |title=Eve Andersson, "Diary of a Start-Up" |access-date=October 4, 2022 |archive-date=December 14, 2004 |archive-url=https://web.archive.org/web/20041214094043/http://www.eveandersson.com/arsdigita-history |url-status=bot: unknown }}</ref>

In 2002, ArsDigita's main assets (including the pinball machine and several pieces of artwork) were acquired by [[Red Hat]].<ref>{{Cite web|url=http://www.redhat.com/about/presscenter/2002/FAQ_ArsDigita.html|title=redhat.com {{!}} Questions about Red Hat and ArsDigita answered|date=2011-06-08|archive-url=https://web.archive.org/web/20110608015730/http://www.redhat.com/about/presscenter/2002/FAQ_ArsDigita.html|access-date=2019-09-27|archive-date=2011-06-08}}</ref>