In 2020, Facebook spent $400 million to buy Giphy. You know, the company that is “Google search for gifs”.
But Britain’s competition watchdog was unhappy with the deal. He felt that Facebook would monopolize the gif market. And then users of other social media platforms like Twitter or Snap would not be able to use those same gifs. He asked Facebook to sell the company.
But now Giphy is trying to convince them to greenlight the deal. He claims the gif business is a walking zombie. That no one uses gifs anymore. So no one else would buy it.
In fact, those are Giphy’s exact words: “They [gifs] have fallen out of favor as a form of content, with younger users in particular describing gifs as “for baby boomers” and “cringe”.
Now you know why we don’t use Gifs in our newsletters. 😛
Anyway…it’s the last Sunday in September. Let’s have a good, yeah?
Here’s a soundtrack to get you in the mood 🎵
Khwaab by Anumita Nadesan
Thanks to our reader Nikhil for this choice!
What caught our attention this week 👀
Is guerrilla marketing done right?
It’s time for the annual week-long shopping spree! Amazon has a big sale. Flipkart has a huge one. And they run ads on television and run full-page ads in newspapers. Everyone wants you to spend your money on their platform.
In 2018, the two e-commerce companies achieved sales of $2.1 billion. And by 2020, it had soared to over $3.5 billion. So you can see why this is a big deal.
But when all eyes are on these e-commerce giants, how do other companies make sure they aren’t forgotten?
Well, Cleartrip, the online travel platform had an idea. They also decided to put an ad in the newspaper. Just that, it wasn’t a whole page blitz. It was a small trailer that would display nicely next to Amazon’s print ad. And he asked people to scan a little QR code.
What would happen next?
This would take you directly to a Cleartrip page where you could scan any item from Amazon’s print ad. And your phone would show you a fabulous vacation you could take at the prize instead! Like a vacation in the Maldives instead of a new TV.
Like ClearTrip Put the“We’ve hijacked the holiday season and turned every sale into a #Cleartrip ad.”
Pretty ingenious, right?
That didn’t make the cut ✂️
On Wednesday, we wrote an article titled The Economic Reforms of 1991—“Half-Cooked” or Genius?. We also got a lot of feedback from our readers. And the prevailing feeling was that the reforms had changed India’s destiny. This then settles the “half-baked” or “genius” debate!
However, one of the reforms of 1991 was to devalue the rupee. Countries usually do this if they want to push exports. Imagine you were living in the United States in 1990. And you wanted to import $100 worth of tea from India. You will need to pay ₹2,100. But when the value of the rupee drops, for the same $100 you get tea worth ₹2,600. That’s 20% more tea and more bang for your buck. So you can choose to take advantage of this opportunity and import even more.
But as we dust off our history books for history, we discovered another episode when we devalued the Indian Rupee – in 1966.
It was a difficult time for the country. We were heavily dependent on foreign aid and had no exports to brag about. To make matters worse, we fought a war against Pakistan in 1965. And we had to spend tons of money on it. Money that we didn’t really have.
We had to find a way to bring in the money. Indira Gandhi’s government therefore had no choice but to devalue the rupee and make exports more attractive. The rupee rose from ₹4.76 to ₹7.50 per dollar. A massive drop in value of 57%!
But unlike 1991, things didn’t quite work out. Because we did not execute any other reform that would attract all the dollars.
The final result ?
Our inflation levels have gone from 5.8% to 6.7%.
You see, the flip side of a falling rupee is that importing stuff is expensive.
For example, if before we had to pay ₹100 for a barrel of oil, now we would have to pay ₹150 for the same amount. And that price is passed on to the consumer.
In short, if we import more than we export, we are effectively “importing” inflation into the country as well. And that doesn’t help anyone, does it?
Money Tips 💰
You are not Warren Buffet
Warren Buffet still lives in the quaint house he bought in 1958. He drives a car until the engine starts sputtering and smoke comes out of the tailpipe. He searches for crumpled up discount coupons in his pockets when dining at McDonald’s.
This is the kind of picture that personal finance people will paint for you to make you realize how important frugality is.
At first glance, this is sound advice. You need to save money to earn more money. And since everyone knows how rich Warren Buffet is, it’s kind of an aspiration to be as frugal as he is.
But think about it for a moment… Warren Buffet has billions and billions of dollars in wealth. He could buy anything he wants, but that probably doesn’t make him happy. Instead, poring over company accounts and drinking copious amounts of coke brings him happiness. Maybe.
Most of us will not become billionaires. Not to mention the multi-millionaires. All we can hope for in the relatively short time we spend on earth is that we do enough to build the life we desire. That we spend our money in a way that brings us joy. As long as you’re not in a rush to spend money you don’t have, you’ll be fine.
So the next time someone judges you on how you spend your money…pause…and think about it for a moment — is the lifestyle they advocate really going to make you happy?
If not, you do.
Game time 🎮
Every now and then we’ll do something different in this newsletter. You shouldn’t be bored, right?
So here is a fun little bingo game that you can play with us. We want to see how many you crossed or if you got a full bingo.
In any case, do not post it on social networks without tagging us! And tell us 3 words that describe Finshots. We will repost our favorites. 🙂 If sharing on social media isn’t your thing, just hit reply or email us at [email protected] and tell us your score anyway!
Pssst… maybe we’ll even pick a random superfan and send them some cool Finshots stuff, huh? 😉
Anyway, that’s all from us this Sunday. Have you watched a great business documentary/movie/TV series? Well, don’t forget to send us your recommendation so we can share your great taste with the world!
As always, tell your friends and family about us and encourage them to subscribe!
See you next Sunday!