John James shares core operating lessons after Facebook algorithm changes destroyed Country Outfitter's organic traffic.
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James: Facebook Algorithm Change Dropped Acumen Brands Below $100M Run Rate
“We were on a run rate before Facebook changed their algorithm over a hundred million dollars, and it dropped south of a hundred million dollars during the, in between the time of the investment and when I left.”
Opinion
John James: Walmart overpaid for Jet.com, but Marc Lore is a genius
“Well, of course they did, but Mark Lohr's a genius. There's only two of him, and one's named Jeff Bezos, and then Mark's the other one. So yeah, of course they overpaid.”
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James: General Atlantic Acumen Brands Buyout Valued Company at $157.5M
“They took a majority stake in it. I think post money on it, and there was some money on the balance sheet. I think it was 157 and a half. Million post money.”
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Country Outfitter organic Facebook reach plummeted from 56% to 0.5%
“So I think we had 56% reach when we'd post an organic Facebook post. And literally overnight, over a span of about three different algorithm tweaks, that went to .5%.”
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Acumen Brands abandoned 19 stores when Country Outfitter hit 90% of revenue
“So we had 20 stores running and then we look up one day and realize that country outfitter is 90 plus percent of our revenue. So we abandoned the rest of them”
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James: Majority of General Atlantic's $83M Acumen Deal Was Secondary Liquidity
“Most of that was secondary, and in fact, the majority of it was, so you know, depending on who you're talking to, it's, it was a venture event, or it was a secondary liquidity event”