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Yik Yak Lays Off 60 Percent of Employees As Growth Collapses (theverge.com)

An anonymous reader quotes a report from The Verge: Yik Yak has laid off 60 percent of employees amid a downturn in the app's growth prospects, The Verge has learned. The three-year-old anonymous social network has raised $73.5 million from top-tier investors on the promise that its young, college-age network of users could one day build a company to rival Facebook. But the challenge of growing its community while moving gradually away from anonymity has so far proven to be more than the company could muster. Employees who were affected were informed of the layoffs Thursday morning, sources told The Verge. Yik Yak employed about 50 people, and now only about 20 remain, the company said. The community, marketing, design, and product teams were all deeply affected, one source said. Atlanta-based Yik Yak was founded in 2014 by Furman University students Tyler Droll and Brooks Buffington. The app updated the concept of dorm newsletters for the mobile era, letting anyone post comments about school, their campus, or life in general. The fact that comments were anonymous initially helped the app grow, as it encouraged more candid forms of sharing than students might otherwise post on Facebook or Instagram.

71 comments

  1. Well, at least someone made money by Anonymous Coward · · Score: 0

    Well, at least someone made money. Been there, done that ("that" as in I got ripped off by assholes).

    1. Re:Well, at least someone made money by Anonymous Coward · · Score: 0

      Who? Probably those laid off employees - they drew salary for building a product that didn't fly. The investors didn't make money. The founders didn't make money (except for perhaps aforementioned salary).

    2. Re: Well, at least someone made money by Anonymous Coward · · Score: 1

      Cry me a river. It is almost always the investors and founders who make money on bullsh*t IPO first-day trading, and the workers on the ground who were offered stock options that can't trade for months (or years) after IPO, that get screwed. Salaries usually don't include weeks of unpaid overtime.

    3. Re: Well, at least someone made money by unixisc · · Score: 1

      Didn't stock options make way for RSU's a while back, after the saga on Enron, Worldcom, Tyco et al? What happened?

    4. Re: Well, at least someone made money by TechyImmigrant · · Score: 2

      In the case of my employer, lots of people got heavily burned by options when they got taxed on their value at the grant time (during the tech bubble) followed by the stock plummeting and all the options being worthless. That was the beginning of the end for options for the rank and file.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    5. Re: Well, at least someone made money by Anonymous Coward · · Score: 0

      Cry me a river. It is almost always the investors and founders who make money on bullsh*t IPO first-day trading, and the workers on the ground who were offered stock options that can't trade for months (or years) after IPO, that get screwed. Salaries usually don't include weeks of unpaid overtime.

      You left out stock dilution of the pre IPO stock where the HMFICs keep issuing more and more stock, while the number of shares the proletariat have or have options on remains the same. Hell they may even deliberate devalue the stock as the options vest to keep them locked in.

    6. Re: Well, at least someone made money by tattood · · Score: 1

      and the workers on the ground who were offered stock options that can't trade for months (or years) after IPO, that get screwed.

      You don't know how IPOs work. When the company I worked for went IPO, any employees that had vested shares had the option to sell shares at the IPO price. Yes, there is a lockout period after the IPO, but anyone that had shares cold sell them if they wanted to. There were a lot more BMWs, Mercedes, and Audis at the company after our IPO, and it wasn't just the founders and executives.

      --
      WTB [sig], PST!!!
  2. Did the investors ever even use the product? by Anonymous Coward · · Score: 1

    Last time I used Yik Yak, about a year ago, 3/4 of the posts were variations of either "I'm horny", "yo that blonde/brunette who works at [store] is hot", or "why is this place so slow"?

  3. So.... Yik Yakked? by networkBoy · · Score: 2

    They Yakked up 3/5 of their staff.

    Of course this is the first I've heard of them. That they market to college kids is likely why. I dropped out of college in 1999 to go into tech.

    --
    whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    1. Re:So.... Yik Yakked? by DerekLyons · · Score: 1

      Looking at the sample content on their website... you didn't miss much.

    2. Re:So.... Yik Yakked? by Motherfucking+Shit · · Score: 5, Insightful

      Yik Yak was all the rage for a few months because it was billed as an "anonymous" hyperlocal message board. As soon as the kids figured out that "anonymous" bomb/shooting threats over Yik Yak would still get them arrested, the user base went away. I don't understand how they managed to raise $73.5 million fucking dollars for this; apparently I need an introduction some of these venture capital people...

      --
      "BSD: Free as in speech. Linux: Free as in beer. Windows 10: Free as in herpes." --Man On Pink Corner in #52607549.
    3. Re:So.... Yik Yakked? by Anonymous Coward · · Score: 0

      That they raised $73.5 million as students of Furman University makes it even more amazing. No offense to Furman grads out there, but c'mon you are not heavily recruited by Wall Street or Silicon Valley.

    4. Re:So.... Yik Yakked? by Darinbob · · Score: 2

      Hyperlocal? Does that mean something other than being a buzzword?

    5. Re:So.... Yik Yakked? by LeftCoastThinker · · Score: 2

      Actually from what I understand, they were doing pretty well until they decided to take away the anonymous aspect of their anonymous localized chat rooms. Apparently that was the draw, and when it disappeared, so did their user base.

      --
      If you disagree, please post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like
    6. Re:So.... Yik Yakked? by fuzzyfuzzyfungus · · Score: 1

      In a sane world, their body would have been cold ages ago; but given how big the hype for "social/mobile" is, and the chatter about "zOMG did Facebook/Google/etc. 'miss mobile???" the VCs probably figured that it was a worthwhile bet just because it had a chance of scaring one of the incumbents enough to get bought out for stupid money(not entirely implausible, given things like instagram and tumblr somehow being 'worth' a billion dollars each).

      It's annoying; but a really stupid investment can be sensible if somebody even dumber is available to take it off your hands for more than you paid. In this case, it looks like that won't be happening; but I can see why somebody would be willing to make the bet(as part of a diversified portfolio, anyone who invested more than they could afford to lose in one company, especially something dumb like this, is denser than most rocks).

    7. Re:So.... Yik Yakked? by Viol8 · · Score: 1

      Probably means mum and dad 20 foot away downstairs doing little jonnies dinner while he pretends to be a bad ass on this "anonymous" service.

    8. Re:So.... Yik Yakked? by Dr.+Evil · · Score: 1

      It distracted kids in schools and got used for bullying etc. It also got picked up by people who wanted to talk to kids in schools, which is not good either. Yik Yak blocked the app at schools in the U.S....

      https://techcrunch.com/2014/03/13/amid-vicious-bullying-threats-of-violence-anonymous-social-app-yik-yak-shuts-off-access-to-u-s-middle-high-school-students/

      "As for how the blocks will affect Yik Yak’s user growth, the company isn’t concerned, saying that the app is still doing “very well” at colleges and the publicly cited user numbers have been grossly under-reported."

      I would guess the kids who used it and were blocked, graduated as kids who forgot it existed.

    9. Re:So.... Yik Yakked? by PvtVoid · · Score: 1

      I don't understand how they managed to raise $73.5 million fucking dollars for this

      Are you kidding? The app that did nothing but say "Yo" conned some VC morons into giving them a million bucks: “We are fascinated by these uses of simple yes/no, on/off communications tools,” Betaworks co-founder John Borthwick wrote on the Betaworks blog. “As the notification layer becomes the primary interface of alert-based information on your phone — as the OS’s allow navigation and controls in those alerts — there will emerge a new class of applications that mediate this layer for web sites, other app’s and connected hardware.”

      With mindless bullshit like that, how can you not get rich?

    10. Re:So.... Yik Yakked? by Zontar_Thing_From_Ve · · Score: 1

      I don't understand how they managed to raise $73.5 million fucking dollars for this; apparently I need an introduction some of these venture capital people...

      It's impossible to predict who is and isn't going to make it so even losers still sometimes manage to get cash. It's just a wild guess by the VC people that maybe they'll make it. I very vaguely remember back in the internet boom of the 1990s that USA Today profiled a handful of start up companies over a long period. The only company I remember, and I don't remember their name at all, was some company that had this crazy idea of (if I remember correctly) doing something like representing websites by planets on your desktop. So if you clicked on Mars, for example, you might go to Amazon.com. They not only got funding for this, even for the times, crazy idea, they got Patrick Stewart, Capt. Picard himself, to act as their paid celebrity spokesperson. Even with a smaller web at the time as an IT professional I remember questioning the need for this kind of thing, but 2 or 3 graduates of some expensive East Coast university's business school got the idea and VC people gave them enough money to get them off the ground and hire employees and pay Patrick Stewart.

      As another example of who can predict, look at Twitter. It can't turn a profit and you can make a strong case that not only is it completely useless it's actually harmful to society, yet it somehow remains in operation and people buy the stock for it.

    11. Re:So.... Yik Yakked? by Anonymous Coward · · Score: 1

      Hyperlocal? Does that mean something other than being a buzzword?

      For Yik Yak? Actually, yes.

      Something like Craigslist is local: there's different subpages for Atlanta vs. Detroit vs. Portland. But it's only local on the "major city" level: you're in a small town 50 miles outside of Denver? Congratulations, you're part of Denver, as far as Craigslist is concerned. The local pages are also not restricted to people in that location. If you're in Santa Fe, you can easily open up the Miami Craigslist and see who's giving away a free sofa.

      Yik Yak, on the other hand, takes things further. (Or so I understand from news reports - I've never used it myself.) It's geofenced with your phones GPS, such that you are unable to access content which isn't enabled for your particular location. This can also be done at a pretty fine level of granularity - not just at the city level, but at the sub-city level, such that content from State University can't be read by people at Small Liberal Arts College across town. I think I also recall hearing you can go further, restricting messages to being read only by people in, say, one particular dorm, and not by people in the dorm across the quad.

    12. Re:So.... Yik Yakked? by Questy · · Score: 1

      I'm not the only one who'd never heard of them. *whew*

      --
      #!/Jerald
    13. Re:So.... Yik Yakked? by nctritech · · Score: 1

      I put it on a phone to check it out and the biggest problem I noticed is that any attempt I made to post something would either have an enormous delay before posting or would never post at all. If you're going to offer a communications platform, it's stupid obvious that you have to have functional communications. Contrast with Whisper which generally posts everything within a minute (unless their inexplicable censorship filter decides to temp-ban you for ten minutes because you said something they don't like) and it's really easy to see why the platform is failing.

    14. Re:So.... Yik Yakked? by nctritech · · Score: 1

      It's funny that the article talks about GPS-based "geo-fences" used to block use in schools. Kids just install a fake GPS app and keep going.

  4. Value by Anonymous Coward · · Score: 0

    And nothing of value was lost.

  5. I blame the blipverts ... by Anonymous Coward · · Score: 1

    ... and Halliburton, but mostly the blipverts.

    1. Re:I blame the blipverts ... by 93+Escort+Wagon · · Score: 1

      ... and Halliburton, but mostly the blipverts.

      Yeah, after the first couple of students exploded - interest in the social network understandably waned.

      Edison Carter's expose probably didn't help either.

      --
      #DeleteChrome
  6. "Anonymity"... by Anonymous Coward · · Score: 0

    People trusted the app up until they started going after and exposing so called "anonymous" users...

  7. Oh no! by Anonymous Coward · · Score: 0

    Not YikYak! What am I going to do now?

  8. What is Tik Tak? by Anonymous Coward · · Score: 3, Interesting

    Ohh Sorry Yik Yak, I thought it was talking about a knock off breath mint candy....

    But seriously... I have no clue what the damn app is, even visiting the page... wtf is a 'herd' ?

    *Edit before posting*: So I realized the biggest issue with the damn site... it uses that "web 3.0" nonsense design philosophy where the top of the page is nothing but a picture, and so I had no clue wtf it was talking about... because the page IMHO purposely hides relevant information that ACTUALLY explains what it is...

    Apparently a (and I could be wrong) a super local social media app, that allows you to be a hipster knowing what is going on in the coffee shop 3 blocks down from you... "so you can know about it before it is 'cool' ".... or something...

    Edit 2: captcha is 'readable' ...catcha gods love irony today

    1. Re:What is Tik Tak? by CCarrot · · Score: 1

      Ohh Sorry Yik Yak, I thought it was talking about a knock off breath mint candy....

      But seriously... I have no clue what the damn app is, even visiting the page... wtf is a 'herd' ?

      Apparently the founders were fully aware that their only potential market would be actual sheeple...

      --
      "I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
    2. Re: What is Tik Tak? by Anonymous Coward · · Score: 0

      Wait until they adopt Firefox or Chrome numbering schemes. By next week it will be Web 47.0

  9. Anonymous social network? by JoeyRox · · Score: 1

    Is that something like a blindfolded vision test?

    1. Re:Anonymous social network? by Anonymous Coward · · Score: 0

      It's basically 4chan with a proximity filter.

    2. Re:Anonymous social network? by Anonymous Coward · · Score: 0

      It's basically 4chan with a proximity filter.

      Which is, if you think about, the one thing you don't want from 4chan, unless it's to be sure that your fellow Anons are all at a safe distance from you. This is the opposite of that.

    3. Re: Anonymous social network? by Anonymous Coward · · Score: 0

      What kind of fools gave these guys money, dhur

  10. never heard of it by Anonymous Coward · · Score: 0

    who's up next?

  11. "Anonymous platform moving away from anonymity" by Z80a · · Score: 4, Insightful

    That sounds a plan as a smart as youtube moving away from videos or sourceforge/github wanting to move away from "that open source thing".

    1. Re:"Anonymous platform moving away from anonymity" by fuzzyfuzzyfungus · · Score: 3, Interesting

      I suspect that their plan to move away from their core business is totally doomed; but I would also suspect that they came up with that plan because their core business was totally doomed(and they couldn't find some idiot to aquire them for silly amounts of money, maybe Yahoo was busy when the called...).

      The world is pretty full of message boards and chat apps; and the combination of proximity filtering and 'anonymity' produces a really, really, low-value environment. Because of the geographic boundaries, it's useless for any of the 'connecting with other enthusiasts of my weird and potentially embarassing hobby/fetish/etc' applications of anonymity, since you can only interact with people in a fairly small area around you; but since it purports to be anonymous(obviously, an application running on your phone with location data mandatory isn't anonymous at all from the perspective of the company operating the service) it mostly attracted the...high quality comments... that people wanted to make about each other; but weren't willing to say to your face.

      Shockingly, people's appetite for that appears to be limited; and the most enthusiastic users are the people most likely to drive the rest of the users away and generate enough unpleasant stories to spook potential advertisers.

    2. Re:"Anonymous platform moving away from anonymity" by Z80a · · Score: 1

      I bet was the diaper fetishists.

    3. Re:"Anonymous platform moving away from anonymity" by Nethead · · Score: 1

      Because of the geographic boundaries, it's useless for any of the 'connecting with other enthusiasts of my weird and potentially embarassing hobby/fetish/etc' applications of anonymity, since you can only interact with people in a fairly small area around you;..

      So that's why I never heard of it in the ham radio forums.

      Did they try to make an app out of FRS radios?

      --
      -- I have a private email server in my basement.
    4. Re:"Anonymous platform moving away from anonymity" by fuzzyfuzzyfungus · · Score: 1

      I think that it was more text based(and obviously included vastly more overhead, being a smartphone 'app' and all); but your summary is chillingly accurate. Take the awesome power of an internet connected general purpose computer and carefully emulate a moderately obscure, insecure, and kind of noisy short range communication medium. I can't imagine why it wasn't more popular.

  12. Meaning Abuse by Anonymous Coward · · Score: 0

    Harassment isn't profitable, and even Trump will fail because of such bad habits.

    1. Re:Meaning Abuse by Z80a · · Score: 1

      Yep.
      Enforcing cultlike behaviors is indeed a much better business model, as you create a safe space for their congregations.

    2. Re:Meaning Abuse by Anonymous Coward · · Score: 0

      Enforcing cultlike behaviors is indeed a much better business model, as you create a safe space for their congregations.

      True enough; Milo Y did make a pretty penny off his drooling fanbois in /r/The_Donald. I guess setting up a fake charity for profit is something he learned from Daddy Trump.

    3. Re:Meaning Abuse by Z80a · · Score: 1

      Not as much as Ms.Sarkeesan did in her several kickstarters to deliver 3 or so youtube videos taking several years to do so.

  13. A company I never heard of goes tits up by Snotnose · · Score: 2

    And I care because?......

    1. Re:A company I never heard of goes tits up by geekmux · · Score: 1

      And I care because?......

      You bring a strong point.

      In light of the point of this entire story, I just came here to say that.

    2. Re:A company I never heard of goes tits up by unixisc · · Score: 1

      How about trying John Doone's cliche? That "No man is an island, blah, blah, blah" horseshit

    3. Re:A company I never heard of goes tits up by Anonymous Coward · · Score: 0

      That's John Donne!

  14. Aren't you special by Anonymous Coward · · Score: 0

    You say that like you're proud to have dropped out.

  15. meh by Anonymous Coward · · Score: 3, Informative

    As a previously avid user (great shitposting app)

    meh.

    They gimped anonymity a while back anyway and people fled.

    They wanted more data to sell, basically.

  16. $73M for 50 people? by tdailey · · Score: 2

    What is wrong with the world that yet-another-chat-app gets $73M to burn across 50 people but real small businesses doing real work with real things can barely get approved for a credit card?

    1. Re:$73M for 50 people? by Anonymous Coward · · Score: 0

      It's how you get money out of your current business, make it reduce taxable profit, and funnel it to your college dropout sons because you forgot to set up a trust fund. Thats why they have to sack the rest of the employees.

  17. Tyler Droll and Brooks Buffington? by RightwingNutjob · · Score: 2

    Are you serious? Yeah, those are totally legitimate names.

    1. Re:Tyler Droll and Brooks Buffington? by sabbede · · Score: 1

      I hear names like that and my first thought is, "stupid f'ing rich white people and their idiot names..." My disgusts slowly fades, leaving an impression that we're dealing with something like this: https://www.youtube.com/watch?...

  18. It's about scalability by rsilvergun · · Score: 4, Informative

    These companies have the potential to make billions with only a handful of employees. That's where the ruling class is putting all their chips. They're trying to find ways to make a ton of money without all those pesky employees getting in the way with their wages and benefits and pensions. When one out of a hundred of these companies takes off it pays for all the rest of the failures (which are tax write offs anyway)

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:It's about scalability by Anonymous Coward · · Score: 0

      These companies only make billions in theory. Snapchat is valued insanely high but do they turn a profit? Again the only winner is the brokers and speculators.

    2. Re:It's about scalability by Anonymous Coward · · Score: 0

      for every 1 of these companies that makes (or more correctly is valued at) billions. 10,000 more lose everything. Venture capital is a high risk game in that sector, most social apps and companies sink taking all the investors money with it.

  19. The reason: They fucked their own app up. by Anonymous Coward · · Score: 0

    I work at a very large major university and YikYak was pretty popular here before they forced "handles" and profiles on everyone.

    It wasn't just "shitposting"- most of the shitposting occurred AFTER they enforced handles with the worst posters making their profile pics pepe memes and taking names like "Isuckfatchoades" and the like.

    Before that YikYak on campus was:

    10% - "lol i'm horny who wants to hook up"/"man that chick/dude is hot"
    10% - Discussing the latest controversy du jour on campus
    10% - Trolling/Shitposting
    30% - Joking about class/college stuff like finals/classes
    40% - Students and Staff/Faculty giving people a heads up when stuff happens on campus; YikYak was great for finding out about traffic jams/class cancellations/etc. It was better at crime alerts than the text alert system the uni spent a shitload of money on after all the college campus shootings.

    There was also a guy who was really awesome who would give away gift cards over YikYak using its older anonymous comment system where each response was given a color coded symbol unique to each poster in the topic. "First person with an orange canoe" or whatever gets a card. They fucked that up and the guy gave up doing the giveaways.

    Now it's dead basically with the same 4-5 shitposters with stupid pepe/4chan avatars spamming garbage because no one feels safe posting anything actually candid or honest because even with handles not requiring real info- everyone knowing who you are as a regular posters gives people a pattern of activity that even on a huge campus like ours can let creepy stalker people find you (or if you express unpopular opinions about say...faculty and staff, this could cause you academic problems).

    So basically they had an interesting app and strangled it in the crib because data mining.

    1. Re:The reason: They fucked their own app up. by Anonymous Coward · · Score: 0

      most of the shitposting occurred AFTER they enforced handles

      So in other words, 4chan is right when they hate on tripfags? It sounds like Yik Yak ended up with the rejects from 4chan who even /b/ would tell to fuck off.

  20. Yik Yak can sure fingerprint your phone... by Anonymous Coward · · Score: 0

    Yik Yak had one good use. When testing out if XPrivacy was working, if I had a different number of yak points than I had previously, I knew the snooping algorithm with the app has been stopped. It is pretty interesting how much data the app would slurp up to fingerprint a phone. It would ask for almost everything, and even look at local and public IP addresses to find who you were.

    Of course, what comments get voted up and what didn't was amusing as well. If one set their location to be near a jail and mentioned how cruddy the food is at a certain address, the comment would be removed (not voted down, removed.) If one made a comment how shitty the blokes were at SXSW [1] after the event, you get voted off in seconds. Make a comment about the local overpriced hamburger joint that is trendy, gone. Make a comment how bicycles should have right of way everywhere, you now got a +250 post. Oddly enough, a political post like, "Are you ready for Hillary?" gets smacked off the charts in record time.

    Once they started demanding a phone number and handles, there isn't any real point. No anonymity with that, and one might as well just comment somewhere else.

    Yik Yak was interesting when one could be confident that anonymity was protected. However, when the app demanded every permission under the sun and would do tons of nasty stuff to fingerprint a device, while demanding personal info and phone numbers... it became not worth it. The cool thing about the app was the anonyminity, and when that was taken away, Yik Yak was trying to compete with FB and Twitter on FB/Twitter's own turf... which meant Yik Yak was pretty much hosed from that point on.

    [1]: SXSW is a music festival held in the "Beers, Steers & Queers" state, where it costs $1000 just to get a ticket for venues, not to mention grossly inflated prices for hotel, parking, and whatnot.

  21. I Tried YikYak by KermodeBear · · Score: 1

    I tried YikYak and I still fire it up maybe once a week - to post content from the perspective of a bear, which is kind of fun. I raided some lady's bird feeder last week and told everyone all about it.

    But I live out in a semi-rural area. One of YikYak's problems is that it only has content if you're near other people that post content. I, myself, posting maybe once a week, am about 25% of the content in my area. The other 70% is people looking for marijuana or sex, with the remaining 5% of people talking about a crazy bear.

    So, it's not a compelling product for a vast section of America. If you live in a city? Cool, great idea, nice product. Out where I am, which is most of America? Not really useful.

    --
    Love sees no species.
    1. Re:I Tried YikYak by pnutjam · · Score: 1

      When you say "most of America" you mean landwise. Most of America, peoplewise, is actually in more urban areas.

  22. More like "closed down" by brentlaminack · · Score: 1

    A friend of mine used to work there until yesterday. He said they closed the place down, more like 95% layoffs. It's gone.

    1. Re:More like "closed down" by Anonymous Coward · · Score: 0

      My uncle works at Nintendo, he let me play 95% of Super Mario 4 early.

  23. Great 80s movie names by HanktheTankCDN · · Score: 1

    Is it just me or does the founders names sound like characters from a bad 80s frat movie? (Tyler Droll and Brooks Buffington)

    --
    Really - that's your defense?
  24. Obviously not the target market by el_smurfo · · Score: 1

    Just went there after hearing about it for the first time. What a vapid, sad little world. Just post after post of people talking about being hungover, wanting sex or a burger, etc. Is this what our modern society is going to be? All anonymity and no humanity? No wonder everyone is depressed, being social animals with no social interaction outside of 140 characters.

  25. shit marketing by Anonymous Coward · · Score: 0

    They must have shit marketing because it seems like most people here have never heard of it.

  26. "more candid" by mccrew · · Score: 1

    " it encouraged more candid forms of sharing than students might otherwise post on Facebook or Instagram"

    That'll make the top-10 list of understatements of the year.

    --
    Hey, Windows users, there is no such thing as "forward" slash, there is only slash and backslash.