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."