The Daily Mail has written off $31 million of its investment in a website it bought just two years.
Founded in 2012, Elite Daily was a viral-stories site that managed to rack up millions of readers quickly by using provocative headlines and exploiting the Facebook algorithm.
DMGT, the owners of the Daily Mail, bought the site in January 2015.
At the time, Elite Daily’s statement said:
This marriage will permit Elite Daily to continue to flourish as a platform for and by Millennials, allowing us to expand internationally, grow our staff and continue to deliver the most relevant and engaging content for Millennials.
Well, that marriage didn’t work out.
In its full-year results posted yesterday, DMGT admitted they had been unable to build on the site’s success.
The company has written down all of its investment in the money-losing company, citing “poor performance” (hat-tip Recode).
DMGT paid a phenomenal £17.6 million for the site and had big hopes. They are now up in smoke.
Seems people at the Daily Mail aren’t always the business geniuses they are made out to be