The latest post on ‘ReadWrite’ is titled “Tumblr’s Perverse Lesson: To Get Rich, Don’t Make Money”.

Matt Assay say, “$1.1 billion. That’s how much your company is worth if it’s long on users and short on paying customers. Just ask Tumblr. Or Instagram. Each yanked down billion-dollar acquisitions despite making virtually no revenue.

Is this a big deal?

Acquihires And Billion-Dollar Payouts

Some seem to think so. At least, for acquihires, the kissing cousin to the revenue-free-massive acquisition. For example, Pando Daily‘s Sarah Lacy slams the acquihire, arguing that

Lazy profit-seekers love these periods in the Valley. Why not? They can make money without having to actually build a company. It’s like a get-out-of-actual-entrepreneurship-free card”.

Tumblr’s Perverse Lesson: To Get Rich, Don’t Make Money

ReadWrite

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