They parted ways with an investor for a new news site, in part because they wanted a staff of 30 and 50,000 paid subscribers. For all the (deserved) blame going to corporate newspaper owners, the journalists are also not without sin. Too many of them think that they need giant staffs, several bajillion layers of editors, etc.
The sad part of it is, I bet a lot of people in Colorado would be really into reading a well-written group blog from former Rocky writers. They can get one for free at wordpress.com or blogger.com.