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Silicon Valley Journalists Lack Common Sense
WatchMojo.com Business & Technology —
I was telling a friend this week that 2008 was a good year because Web entrepreneurs and employees began to finally get some perspective on expectations, valuations, and common sense (let’s hope this time it sinks in and lasts, because clearly, we did not learn from the 1998-2000 era). But the truth is, I think the writers and journalists that cover these companies are partly to blame, too.
Judging from this article in Business Week, I don’t think it will last, though.
A year ago there were reports ...
Despite the legions of fan-boys, Digg still makes peanuts
VC Ratings —
... The shiniest nugget in this BusinessWeek story about the tough times facing technology startups is this: Digg Inc., whose enormous popularity is visible in the thousands of groupies that throng the news-sharing company's periodic ...
Around the Web 12.19.08: I can haz piracy, puppies and reindeer
L.A. Times Tech Blog —
... -- Music industry decides to stop suing its customers to combat piracy. Wall Street Journal
-- Who let the puppies into Ustream? These live streaming stars are worth their weight in puppy chow. Wired
-- Watch out for falling pay: Online ad network Glam puts workers on "variable" pay. VentureBeat
-- Also falling: the value of Silicon Valley start-ups. Business Week
-- But some start-ups are still raising $$$. GigaOm
-- The most famous ...
Digg's losses over two years: $7 million [Startups]
Gawker: valleywag —
... BusinessWeek's Spencer Ante got ahold of Digg's financial statements. They are frightful, even for a startup. Last year, the company took in $4.8 million and spent $7.6 million, for a loss of $2.8 million. In the first nine months of this year, losses grew almost as fast as revenues: Digg took in $6.4 million and spent $10.4 million, resulting in a $4 million loss. ...
It Costs Digg $5 Million a Year to Run the Internet
Gawker: valleywag —
... BusinessWeek's Spencer Ante got ahold of Digg's financial statements. They are frightful, even for a startup. Last year, the company took in $4.8 million and spent $7.6 million, for a loss of $2.8 million. In the first nine months of this year, losses grew almost as fast as revenues: Digg took in $6.4 million and spent $10.4 million, resulting in a $4 million loss. At an annual clip, that's more than $5 million out the door a year. ...
It Costs Digg $5 Million a Year to Run the Internet [Black Holes]
Gawker: valleywag —
... BusinessWeek's Spencer Ante got ahold of Digg's financial statements. They are frightful, even for a startup. Last year, the company took in $4.8 million and spent $7.6 million, for a loss of $2.8 million. In the first nine months of this year, losses grew almost as fast as revenues: Digg took in $6.4 million and spent $10.4 million, resulting in a $4 million loss. At an annual clip, that's more than $5 million out the door a year. ...
Report: Digg still mining for profits
Webware.com —
... There are some stunning numbers in BusinessWeek about social news site Digg: In 2007, the company reportedly pulled in only $4.8 million in revenue and lost $2.8 million. In the first three quarters of 2008, it lost $4 million on $6.4 million in revenue.
Digg declined to comment on the numbers.
This is a little bit disconcerting, if true. Digg has been one of the hottest start-ups in Silicon Valley's hype machine for the past few years, due ironically in part to an August, 2006 BusinessWeek cover story depicting boyish founder Kevin Rose ...
Report: Digg still mining for profits
The Social —
... There are some stunning numbers in BusinessWeek about social news site Digg: In 2007, the company reportedly pulled in only $4.8 million in revenue and lost $4.8 million. In the first three quarters of 2008, it lost $4 million on $6.4 million in revenue.
Digg declined to ...
New Reality: Silicon Valley Wealth Machine - The Rebooting Meritocracy
Furrier.org - John Furrier's Personal Blog —
... Businessweek has a post about Silicon Valley wealth machine. Silicon Valley is going through another downturn. It’s the second major downturn in less than 10yrs. I’ve been on the ground for all of those years. It’s bad but not ‘out’. ...
Digg’s Sorry Revenue Stream, And Rumors Of An Experimental Ad Product
TechCrunch —
... So Business Week gets their hands on Digg’s financials and reports that the company had 2007 revenues of $4.8 million and losses of $2.8 million. The first three quarters of 2008 Digg had revenues of $6.4 million and losses of $4 million. That implies total 2008 revenue of $8.5 million, with $5.3 million in losses. ...
New Reality: Silicon Valley Wealth Machine - The Rebooting Meritocracy
Furrier.org - John Furrier's Personal Blog —
... Businessweek has a post about Silicon Valley wealth machine. Silicon Valley is going through another downturn. It’s the second major downturn in less than 10yrs. I’ve been on the ground for all of those years. It’s down, but not completely ‘out’. ...
Roundup: Rumors of layoffs at Microsoft, Tweeting a plane crash, music video fighting and more
VentureBeat —
... from the video site after negotiations between the two sides broke down. Humorously, both sides are saying the decision to remove the content was their own, as MediaMemo points out.
Is Facebook being gamed? — Yes, according to a blog post on SquaredPeg. The whole web debates here.
Digg losing millions of dollars a year — The social voting site is on its way to over $5 million in losses this year, according to BusinessWeek. And remember, that loss is after the advertising deal with ...
New Reality: Silicon Valley Wealth Machine - The Rebooting Meritocracy
Broadband Developments —
... Businessweek had a post last week about Silicon Valley wealth machine. Silicon Valley is going through another downturn. It’s the second major downturn in less than 10yrs. I’ve been on the ground for all of those years. It’s down, but not completely ‘out’. ...
Report Says Twitter Would Take 36 Years to Catch Facebook - If Facebook Stopped Growing Today
ReadWriteWeb —
... 38% of Twitter users haven't uploaded a photo of themselves to their profile. This is a far cry from Facebook or LinkedIn's "verified identities" and closer to Digg's bizarre world of juvenile freaks with random handles. The Digg model, by the way, is having a really hard time making any money. ...
Where Digg Fails, A Success for StumbleUpon
Mashable! —
... are approximated at $5-7.5 million. At the same time, Businessweek estimates that in the first three quarters of 2008, Digg lost $4 million on $6.4 million in revenue. While I don’t know the costs to run StumbleUpon, it’s fair to assume that they are far less than running Digg, not only because StumbleUpon is substantially smaller in terms of users and monthly traffic, but also because the service doesn’t require the same number of servers or have to deal with the bandwidth costs that destination sites like Digg do. ...
Digg to cut workforce 10%, hire new sales team
Webware.com —
... Adelson strongly denied the accuracy of revenue numbers reported by BusinessWeek last month. "I don't know where those numbers came from," he said, "I can confirm they are not accurate." But he did confirm the spirit of the story. "It is true we have been focused on growth and user features. We had this Microsoft deal to take us to profitability, and we were definitely focused on the user experience. We didn't focus on the tamp time to break-even. We never felt there would be any challenge to monetize Digg." ...
Digg Cuts Staff, Focuses on Profitability
Mashable! —
... BusinessWeek recently disclosed that Digg’s revenue was just $4.8 million in 2007, and through the first three quarters of 2008, $6.4 million. While big numbers by most Web startup standards, considering that Digg reaches more than 30 million people each month, they are hardly inspiring. ...
Forget Acquisitions: Digg's Focused on Recommendations
Internet Evolution: —
... last summer, Digg's CEO Jay Adelson said the company was very focused on expanding its "international footprint" with acquisitions overseas. Now that seems to have fallen out of visibility. "We were accelerating plans to do that and then, when the bottom dropped out of the market and everything changed, I think that slowed down our plans a little bit," says Buch. With a staff of 75, Digg is still spending the most money on employees. The company doesn't divulge revenues, but a BusinessWeek article published in December said the company lost $4 million on $6.4 million in ...
Digg’s New Ad Format Matches Popular Stories With Advertisers
Mashable! —
... , a result of a number of new traffic enhancing features. The company has also been working to improve its monetization, after bringing in somewhere south of $10 million in 2008. ...
