Chinese Blog Bubble Popped Before It Began?

from the well-that-was-fast dept

Over the summer we wrote about a bizarre story about a Chinese blogging firm that was getting attention for claiming that it was going to go public with a $1 billion valuation. There was no reality to back up the claim — just a CEO saying it would be so. There were a lot of other problems with the article, as well (including misleading statements about how much money the company had raised and how much revenue it was making), but it should come as no surprise to find out that the company (which did, indeed, raise the $10 million it was looking for just a few months ago) is now laying off one-quarter of its staff, or about 100 people, claiming that maybe the Chinese blogging business isn’t such a big business after all. Of course, the really bizarre part is that this blogging firm could actually already employ 400 people. That seems like an awful lot of people, especially considering that the company wasn’t making very much money and (despite the misleading claims) hadn’t really raised that much money either.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Chinese Blog Bubble Popped Before It Began?”

Subscribe: RSS Leave a comment
Anonymous Coward says:

It's Asia

I’m not surprised about the number of people at all. Companies in Asia aren’t designed to make money, they’re designed to employ people. Now putting my opinions of the philosophy aside, this generally means a lot of really incompetent people get jobs and not many ever get fired. It’s a “problem” (as viewed from a western business philosophical standpoint) that is everywhere in asia. There’s probably really just 10 guys who do work, about 100 people “marketing”, HR could be about 50 people, and another 200 customer support.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...