The consortium was founded in 2005 with grand plans of overthrowing the New York Times and replacing it with "citizen-journalists" who linked to Times stories they disliked and explained what was wrong with them.
So basically some investors decided to pay a bunch of individual political bloggers pretend ad money, and now the investors are sick of waiting for the pretend ad money to become real, and so they are pulling out. And all these bloggers who were just being given money for blogging about how Barack Obama is a Muslim are shocked that their blogs have been losing money since day one!
Here is the bad news, though! The Pajamas Media management is pressing on with one of their ventures: PJTV! This subscription-based service features conservatives vlogging and also they sent Joe the Plumber to Israel. It is a shame that they didn't just pull the plug on that experiment without paying for Joe's ticket home.