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It's pretty clear, to me at least, that they'll become one of the biggest websites of any kind, and with a massive amount of data around what people like and ar
by austenallred 9y ago
It's pretty clear, to me at least, that they'll become one of the biggest websites of any kind, and with a massive amount of data around what people like and are interested in.
Pretty simple to imagine that being worth far more than $1 billion. Their user growth recently has been astounding.
- jacquesm 9y agoI agree with the first bit and the last bit. The bit that makes no sense to me is that their value should be predicated on them making at least that much in either profits or some kind of exit. Since almost all attempts to really monetize Reddit in the past have failed because of massive backlash from the users I wonder what the plan is. There has to be some kind of major change to either Reddit or to the audience to warrant the valuation.
- mbesto 9y ago> all attempts to really monetize Reddit in the past have failed because of massive backlash from the users I wonder what the plan is. Exactly this. Reddit has been around long enough that I don't foresee any experimentation that could yield this type of commercial turnaround.
- Judgmentality 9y agoWhy are users worth money if they're barely being monetized? Considering how big (and old) reddit already is, they should already be profitable, and hence shouldn't need to raise money - unless they're planning something radical and expensive. Reddit is a cool site and wildly popular, but that doesn't mean it's going to make billions of dollars. Also I suspect the site is increasingly populated with bots, not real users. I'd actually imagine the site is less popular this year in terms of real users than it was a year ago, although I have no way to know that and could be wrong. I'd need to see hard evidence to believe it hasn't had a rapidly growing bot population though.
- austenallred 9y agoBecause they have the potential to be monetized. I have wild success with Reddit ads even though you can tell the ads products never receive much love (or maybe that's just Reddit generally). Companies are valued based on discounted future cash flow. In other words, investors are betting that at some point in time Reddit will generate billions, even when adjusted for a discount for time. That's not crazy at all to me to see that happening.