Flooz mulls merger after shutting down

Two days after closing access to its Web site, online payment service Flooz.com said Friday that it is in merger talks to try to resume its operations.

The New York-based company acknowledged the suspension of its Web site and the merger talks in an e-mail to its partners, and said it would update them as soon as possible.

"As most of you know, Flooz.com has suspended its Web site operations and is in discussions regarding a possible merger," the company said in the e-mail. "We are working very hard to complete those discussions and resume the Flooz.com Web site operations. Thanks for your patience."

In a statement released Friday, the company blamed its problems on the slowing economy. --Wolverton and Greg Sandoval, Special to ZDNet News