Former employees also told TechCrunch that this isn't temporary and they weren't paid this week.
Cuil was created by former Google engineers Anna Patterson, Russell Power and Louis Monier, who picked up $33 million in venture capital to launch the search engine. Traffic to the site peaked by September 2008.
No official word yet from the company.
UPDATE: According to TechCrunch: "Cuil was in the final stages of an acquisition as of last Wednesday, and everything was in place except the final signatures. Then the deal fell apart for some reason."
Meet Your Favorite Search Engine Watch Contributors
Many of SEW's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Thom Craver, Josh Braaten, Lisa Barone, Simon Heseltine, Josh McCoy, Lisa Raehsler, Greg Jarboe, Dan Cristo, Joseph Kerschbaum, John Gagnon, Eric Enge and more!