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BuzzFeed buzzkill: Its stunning revenue miss goes viral
- nluto 11y agoBuzzfeed's impending failure is the canary in the mine for all of social media, such as was New Century mortgage abrupt announcing of bankruptcy. I remember that day still as I was a mortgage broker, and you all saw it documented in Emmy award winning The Big Short. At best Buzzfeed should have been a branch of a larger media conglomerate or news website like Yahoo. Buzzfeed is another of the ultimate pump and dumb schemes we have seen on Wall St and Silicon Valley so many times. This time they told us "web traffic" and "likes" on face book were so much more important than posting profits, and their insane cash burns were ignored as our old friend greed continued to inflate the bubble through the soaking up of excess money from unbelievably greedy VCs who were unsatisfied with low single digit returns from traditional companies. VCs are hugely important to capitalism (as we have seen with shows like Shark Tank) but with huge gains comes huge risk and big falls. We can all be glad this bubble will predominately affect those involved in this industry, yes big social networks are going to get pinched big, but they will find their footing before the bottom while the other 80% of these startups with no hope of ever achieving profitability will be forced to fold into one another, or face the buzzsaw that is currently spinning inches away from Buzzfeed.