Flyp, experimental online magazine, to close

(AP) -- Flyp Media, an online magazine startup that tried innovative approaches to Web journalism, says it has lost its financing and can't stay afloat on advertising revenue.

Flyp (pronounced "Flip") had some success in its two-year run. It combined online tools including video, Flash graphics and animation to tell stories. It partnered with Fortune to produce interactive versions of the magazine's features.

Flyp Media CEO Alan Stoga said the company will resume under a new name and try to do similar work with publishers, which would be charged fees for Flyp's work. Flyp's staff is being laid off, but Stoga said some may be rehired for the new effort.

Entrepreneur Alfonso Romo had been bankrolling Flyp along with a sister site in Mexico, Reporte Indigo. That site will continue.