Claria Corporation
| Company type | Private |
|---|---|
| Industry | Software, Online advertising |
| Predecessor | Gator Corporation |
| Founded | 1998 |
| Founder | Denis Coleman, Sasha Zorovic, Mark Pennell |
| Defunct | October 2008 |
| Fate | Ceased operations; rebranded as Jelly Cloud before closure |
| Headquarters | Redwood City , United States |
Area served | Worldwide |
Key people | Jeff McFadden (CEO from March 1999) |
| Products | Gator (Gain AdServer), eWallet, GotSmiley, Dashbar, Date Manager, Precision Time, Screenscenes, Weatherscope, WebSecureAlert |
Number of employees | 36 (2008) |
Claria Corporation—originally known as Gator Corporation—was a software firm based in Redwood City, California, recognized for introducing “Behavioral Marketing,” an innovative approach to online advertising. Established in 1998 by Denis Coleman (a Symantec co-founder), Stanford MBA graduate Sasha Zorovic, and engineer Mark Pennell—drawing from Zorovic’s research at Stanford—the company appointed Jeff McFadden as CEO in March 1999, which resulted in Zorovic’s effective removal from leadership.
The company became closely identified with its Gain advertising network, which asserted it reached more than 50 million users. Claria withdrew from the adware sector by mid-2006 and ultimately shut down all operations in October 2008.
Its primary product line, known as "Gator" or the Gain AdServer, gathered personal information such as users’ browsing patterns and partial credit card details to serve targeted advertisements. Promoted as a frontrunner in behavioral online marketing, the firm changed its name to Claria Corporation on October 30, 2003, aiming to better represent its growing portfolio for both consumers and advertisers, according to then-CEO Jeff McFadden.
Gator
Introduced in 1999, Gator was frequently distributed alongside free software titles like Go!Zilla and Kazaa. Its development was partially supported through advertising income generated by Gator itself. By mid-2003, estimates suggested it was installed on approximately 35 million personal computers.
While users could remove Gator via the Windows Control Panel, many anti-spyware utilities also detected and eliminated it. The end user license agreement (EULA) sought to limit manual uninstallation by forbidding "unauthorized means" to uninstall the program.
Gator interfered with the revenue streams of numerous web publishers that relied on ad-supported models by replacing their banner ads with its own advertisements, thus diverting income away from content creators. In June 2002, leading publishers such as the New York Post, The New York Times, and Dow Jones & Company initiated lawsuits against Gator over this conduct. Most of these legal disputes were resolved privately by February 2003.
In response to accusations labeling it as spyware, Gator engaged in legal actions against its detractors; notably, in September 2003, it issued threats of libel suits against websites like PC Pitstop. As part of a settlement agreement, PC Pitstop removed pages that questioned whether Gator constituted spyware.
By February 2004, Gator confidentially settled lawsuits filed by seven prominent newspaper publishers including The Washington Post, New York Post, and The New York Times. Comparable claims from corporations such as L.L. Bean and Extended Stay America were also settled out of court.
Other discontinued applications
Gator Corporation introduced a range of "free" Internet utilities designed for various functions. Nevertheless, after installation, users were frequently exposed to advertisements delivered by the Gain network even when these applications were inactive. The collection included:
- Gator – originally promoted as a password management tool.
- eWallet – auto-fills personal details on websites using stored user data.
- GotSmiley
- Dashbar – an ad-supported search toolbar notorious for generating intrusive pop-up ads during web browsing.
- Date Manager
- Precision Time
- Screenscenes
- Weatherscope
- WebSecureAlert
These programs displayed advertisements during usage. According to Computer Associates' spyware information center, all these applications are categorized as both adware and spyware because they present ads unrelated to their core functionality and transmit user behavior data back to Claria via Internet connections. Although installation required explicit user consent, Claria depended heavily on users’ limited understanding. During setup, users could opt for a "free" ad-supported version or pay $30 for an ad-free alternative. Following Claria’s announcement of its ad network closure, the company stopped accepting payments for ad-free editions.
Backers
Although Claria Corporation was often surrounded by controversy, it attracted investment from prominent venture capital firms such as Greylock Partners, Technology Crossover Ventures, and U.S. Venture Partners. Early financial backing also came from investor Andy Bechtolsheim. In April 2004, Claria submitted paperwork for an initial public offering valued at $150 million, having reported $35 million in profit on $90 million in revenue for the previous year. Nevertheless, concerns arose among investors regarding possible legal challenges—especially in Utah—and the company's heavy reliance on a single partner, Yahoo Overture, for the majority of its income. These apprehensions led Claria to retract its IPO application in August 2004.
Recent news
In July 2005, Microsoft Corporation encountered backlash when its anti-spyware software ceased identifying Claria's applications as "spyware," although users maintained the option to uninstall them. Reports indicated Microsoft was contemplating acquiring Claria, prompting worries about potential conflicts of interest. Meanwhile, other cybersecurity vendors like Computer Associates and Panda Software’s TruPrevent Technologies continued to categorize Claria’s offerings as adware and spyware.
By March 2006, Claria declared its withdrawal from the adware sector to concentrate on developing personalized search technologies.
On July 1, 2006, the company discontinued all pop-up advertising campaigns. Around this period, ex-Claria personnel established NebuAd, which adopted an alternative approach to targeted advertising. On April 21, 2008, Claria divested the gator.com domain.
After rebranding as Jelly Cloud, the firm quietly ceased operations in October 2008. Having raised $50 million in funding and employed 36 individuals, the closure was attributed to industry consolidation pressures.
External links
- Gator Information Center (Claria) - PC Pitstop
- claria.com - Web Safety Rating from McAfee