Wednesday, August 14, 2019

Financial genius is a short memory in a bull market.

There was a time, many years ago, when Tumblr was one of the most exciting places on the internet. Those days are long gone now with millennials flocking to more exciting communities such as TikTok and Twitch.
But at its peak, the online blogging service had 20bn monthly page views. It was the go-to place to share photos, graphics and snippets of text. Barack Obama and Lady Gaga were keen users and the site brought in more monthly web traffic than Wikipedia and Twitter.
It was such hot property that Yahoo decided to buy for $1.1bn (£910m) in 2013. Today, however, page views have fallen to just 400m per month and this week the site was brought for less than $3m by Wordpress owner Automattic - just 0.27pc of its original price.
Pippa, my god daughter got a job with Yahoo in 2016, and came and stayed with me while she was finding her feet. It seems like no time ago, but it as long from then to now as it was from her employers buying Tumblr to her starting with them. Back of the envelope calculation the value of Tumblr decreased by about half a million dollars every single day.

It's not really related, but Europe's biggest data centre is a quarter of an hours drive from mum and dad's house. I am astounded. Should I be?

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