The costs of running Buzzfeed
Gawker claims to have got ahold of Buzzfeed’s books:
- In fiscal year 2011, BuzzFeed’s editorial budget was $858,780
- In 2012, it was $4,724,608
- In 2013, it was $11,739,790
- In the first 6 months of 2014, it was $10,449,422
If accurate – it shows the remarkable speed at which the site is growing – and that it’s staying profitable despite the cost surges.
Some interesting analysis from Jean-Louis Gassée, too:
Regarding “real revenue, growing, moderate cash use,” he wrote in an email to Gawker, “the company is, as accountants say, a ‘going concern,’ it has cash to last several years. Perhaps forever, meaning some day, revenue is large enough to provide positive cash flow from operations and, voilà, you have a real, autonomous business.”
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