Re: Techcrunch: Adultfriendfinder sold for almost 1 billion dollars
Pumping up numbers for a sale can make sense. Doing so in a manner that draws a ton of negative press does not, unless you have a buyer who does not have to care what public perception is.
As for coming in and doing wholesale changes, if what I think has happened is really the case, the m.o. would be exactly the opposite. If you buy something that is working, you leave it the hell alone for the most part.
You might seek some efficiencies in management (RIF). You might also eliminate any really over the top expensive perks. But day to day for the front line troops should be unimpacted, and you want it business as usual especially for customers, suppliers, etc.
Why would you lower affiliate payments? This isn't a mainstream startup operating at a loss just waiting for that big buy out or IPO. They're making a profit, a tidy profit. How do you do that with those insane payouts? Well, you either have hellacious retention, or you shave your ass off. Either way, the model is working, why fuck with it?
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