HotViews Archive

Skip Navigation Links.
Collapse 2019 (40)2019 (40)
Collapse August (40)August (40)
Next round of Local Digital Fund opens
20 Aug 2019
Accenture acquires Parker Fitzgerald
20 Aug 2019
Tribal on track but facing market challenges
20 Aug 2019
*UKHotViews Extra* askporter: ‘Pioneering’ property management
20 Aug 2019
Oracle taps Open Banking to accelerate mortgages
20 Aug 2019
Full year looking good for Tracsis
20 Aug 2019
Cogeco Peer 1 relaunches as Aptum Technologies
20 Aug 2019
More dosh for Manchester startup Sorted, sorted!
19 Aug 2019
Blue Prism picks up new COO
19 Aug 2019
*NEW RESEARCH* Financial Services SITS Supplier Ranking 2019
19 Aug 2019
What are you waiting for?
19 Aug 2019
Corero revenue dips 16% in tandem with Juniper slump
16 Aug 2019
Germany’s Heycar declares war on UK used car market
16 Aug 2019
A Level results
16 Aug 2019
*UKHotViewsExtra* Capital markets is key for Evans and DXC Technology
16 Aug 2019
YPO launches £400m data centre and cloud framework
15 Aug 2019
*UKHotViewsExtra* Boris, tech & short-termism
15 Aug 2019
VMware looking to acquire Pivotal
15 Aug 2019
Gravity banks in the cloud with Finastra
15 Aug 2019
BAE Systems supports RAF Typhoon mission planning
15 Aug 2019
RBS bailout fund awards £40m in new grants
15 Aug 2019
Cisco outlook suggests sluggish year ahead
15 Aug 2019
H1 results reveal difficult times for TechFinancials
15 Aug 2019
Flatfair raises dosh for controversial ‘no-deposit’ tenancy
15 Aug 2019
New TechMarketView.com coming soon
15 Aug 2019
WeWork files IPO prospectus
14 Aug 2019
Tumbling
14 Aug 2019
*NEW RESEARCH* UK Application Services Supplier Ranking 2019
14 Aug 2019
SCISYS keeps winning
14 Aug 2019
PA Consulting to go under the hammer?
14 Aug 2019
Regulator confirms 18 month delay to payments reforms
14 Aug 2019
Accenture lands major NHS cyber deal
14 Aug 2019
‘Zero revenue’ startup Yoti worth £82m? Excuse me?
14 Aug 2019
SCC’s UK profits rocket
14 Aug 2019
Computacenter buys back RDC business from Arrow
13 Aug 2019
Flat first half but positive EBITDA for Starcom
13 Aug 2019
*NEW RESEARCH* UK Business Process Services Supplier Ranking 2019
13 Aug 2019
Don’t mention the war – Deliveroo exits Germany!
13 Aug 2019
ADI secures NPIF investment for NHS push
13 Aug 2019
An Evening with TechMarketView 2019 - Update!
13 Aug 2019

UKHotViews©

 

Wednesday 14 August 2019

Tumbling

TumblrYou have probably read the news by now that Yahoo has sold Tumblr for c$3m  to Automattic. Made me reread my May 13 post Will Tumblr make Yahoo ‘cool’? when Yahoo’s then CEO Marissa Mayer announced its $1.1b acquisition of Tumblr from its 27 year old founder David Karp. My comment was ‘That’s a ridiculous amount to pay for a company with revenues of just $15m’.

If you have a TechMarketView subscription (if not, why not?) I suggest you search the archive on Marissa Meyer as my many posts on this lady will give you a taste of my true feelings for her. Let’s just say, I am not a fan!

Of course, Yahoo was not the only company to pay over the odds to try to become ‘cool’ by buying a social media provider. Think Bebo or MySpace. Indeed I can’t think of any ‘heritage’ company that actually succeeded in becoming ‘cool’ by buying an upstart. All the ‘cool’ companies are still pretty much still controlled by their founders.

Reinventing yourself is pretty difficult to do even if your aim is not to become cool. IBM have tried many times without huge success. One of the few ‘reinvention’ success stories around at the moment is Microsoft once they jettisoned Balmer.

If you reread my May 13 post Will Tumblr make Yahoo ‘cool’? I was, even then, being asked if “we were living through a rerun of those crazy 1999 ‘dot.com’ days when, as an analyst, I was told to suspend all notions that companies should be valued on profits or even revenues. Eyeballs was all that mattered!”

For most of the current tech giants, that is not the case as they are extremely profitable and cash generative and are valued on pretty unexceptional multiples. But for most of the unicorns and the current crop of IPOs, I really do think that valuations have entered Alice in Wonderland.

Maybe I can finish with a quote from Jamie Powell’s excellent article The Tumblr tumble in the FT yesterday which ended “Thank the lord that, with WeWork’s IPO documents set to arrive this afternoon, there is no sign of similarly speculative mania in the markets today”.

Posted by Richard Holway at '12:06'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link




© TechMarketView LLP 2007-2019: Unauthorised reproduction prohibited see full Terms and Conditions.