
BuzzFeed buzzkill: Its stunning revenue miss goes viral - mathattack
http://money.cnn.com/2016/04/12/media/buzzfeed-missed-projections/index.html?iid=hp-stack-dom
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Buzzfeed'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.

