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> It sold for a lot, suddenly the new owners are eager to get returns on that investment. Reddit launched in June 2005, sold to Condé Nast in October 2006, and

> It sold for a lot, suddenly the new owners are eager to get returns on that investment. Reddit launched in June 2005, sold to Condé Nast in October 2006, and was spun off as an independent company with Advanced Publications (Condé Nast's parent) maintaining a majority interest in 2011. So it's only actually been sold once, back in 2006, and that was not for a lot of money -- under $20M. Maybe there's a billion dollar exit in the company's future, but there definitely hasn't been one in its past. (N.B.: I doubt there's one in its future, either.)

ddingus 6y ago
Whatever the sale price, revenue expectations clearly exceed user value. Thanks for the data. "Billion" was not intended literally. "Large" would make as much sense. The point being the current parent expects more than may make sense and appears willing to devalue what they have to get there. Likely does not understand and or care what they have.
- chipotle_coyote 6y ago
  > The point being the current parent expects more than may make sense and appears willing to devalue what they have to get there. The people in charge may absolutely expect more return than makes sense and may be willing to devalue what they have to get there -- but those very same people were literally there at the beginning. What I was getting is that there is no "current parent". Reddit is, as of this writing, an independent company whose current CEO is one of its original founders, and whose executive chairman until recently was one of its other original founders. So I guess I just think this is a more complicated case than the usual story of "great thing ruined by new owners." If Reddit is being ruined by executives who don't understand the the product, it's not because the original founders sold out to uncaring corporate overlords -- it's because they chose to become uncaring corporate overlords themselves. It's not at all impossible that former corporate overlords at Condé Nast may have understood the value of Reddit better than Reddit's creators do.
  - ddingus 6y ago
    Fair enough. The general dynamic still applies. The original vision was perfectly sustainable. Now it is generally not, and the value is dropping away. Wasted.

ddingus 6y ago

Whatever the sale price, revenue expectations clearly exceed user value. Thanks for the data. "Billion" was not intended literally. "Large" would make as much sense. The point being the current parent expects more than may make sense and appears willing to devalue what they have to get there. Likely does not understand and or care what they have.

chipotle_coyote 6y ago
> The point being the current parent expects more than may make sense and appears willing to devalue what they have to get there. The people in charge may absolutely expect more return than makes sense and may be willing to devalue what they have to get there -- but those very same people were literally there at the beginning. What I was getting is that there is no "current parent". Reddit is, as of this writing, an independent company whose current CEO is one of its original founders, and whose executive chairman until recently was one of its other original founders. So I guess I just think this is a more complicated case than the usual story of "great thing ruined by new owners." If Reddit is being ruined by executives who don't understand the the product, it's not because the original founders sold out to uncaring corporate overlords -- it's because they chose to become uncaring corporate overlords themselves. It's not at all impossible that former corporate overlords at Condé Nast may have understood the value of Reddit better than Reddit's creators do.
- ddingus 6y ago
  Fair enough. The general dynamic still applies. The original vision was perfectly sustainable. Now it is generally not, and the value is dropping away. Wasted.