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Big Talk’s Cheap

13 years ago
2 Comments
by Kim Klaver
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Two years ago, AOL bought a social media upstart called Bebo for $850 million dollars. AOL’s CEO at the time, Randy Falcon, proudly announced to the press that his big purchase was:

a “game-changing acquisition” that would turn AOL into “a social media powerhouse.” New York Times (PDF here in case.)

That was then.

Here’s today. AOL just reported selling Bebo – for about $10 million dollars. A loss of oh, about 99%. And that is not counting the dozens of people who worked on it full time since they bought it, who were paid salaries, benefits, etc by AOL.

Bottom line: Big loud predictions of future success guarantee zip. Don’t talk. Just do. (If you succeed, there will we long lines of people waiting to find out blow by blow how you did it.)

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Kim Klaver

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2 Comments

  • There was a time where AOL could do no wrong. Everything they touched turned to gold. (see the AOL merger with Time Warner.)

    They also did not have much competition back then, as they were essentially the first large Internet provider in the marketplace.

    These days, the herd has been thinned. There is a lot more competition.

    And I have never even heard of a company or social media named Bebo.

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  • Great example Kim of the bottom line. "Big loud predictions of future success guarantee zip. Don't talk. Just do. (If you succeed, there will we long lines of people waiting to find out blow by blow how you did it.)"

    What's resonated with me over the years of training with you is that biggest, greatest, best doesn't get you anywhere. Keeping it on the low and just doing. Pretty simple!

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