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And now tell me again that the Reddit Blackout had now effect. How can the Reddit CEO not be fired?

by bhaak 3y ago

the_shivers 3y ago
Doesn't Discord's valuation dropping just as much suggest the decline may not be driven by protesters?
- AdamN 3y ago
  yeah, this seems like a mark to market change (the market just isn't paying as much as it used to) and is lagging by a few months. The impact of the blackout hasn't been quantified yet by investors and probably not even internally at this point.
  - zirpderp 3y ago
    if I were on the board I would be voting to fire him asap. you've successfully fomented a site wide revolt in the year you're trying to IPO. unacceptable.
    - edgyquant 3y ago
      The board probably forced him to do it
- Stranger43 3y ago
  Given that the reason there were protest was that reddit wanted to monetize a part of their platform that was not generating ad revenue those two things could be completely related. if reddit cannot monetize their users, either as a product to sell to advertisers or by converting them to paying customers it's might not be viable as a profitable business.
BaseballPhysics 3y ago
It had no effect. These write downs are likely a byproduct of the macro environment. The cheap money has run out and the stock market is taking a hit as interest rates have climbed. Fidelity's valuations reflect what they believe they can sell their share for, and now they believe they'd sell it for less. If anything, my bet is Spez has been seeing that writing on the wall for a while (either because he read the tea leaves or because of signalling from Reddit's investors) and the API pricing changes are part of a desperate strategy to boost cashflow and hopefully goose their valuation in advance of a hoped-for IPO.
- hightrix 3y ago
  If the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business, then the incompetence in reddit is stronger than I previously imagined. Every single move they have made regarding this change has been the wrong one. Incompetence is reddit's lifeblood, from an outside perspective.
  - BaseballPhysics 3y ago
    > If the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business... I can't think of a good reason to want to put 3PAs out of business given, based on what we know, those users represent a small minority of total Reddit users (and therefore a small fraction of ad impressions). So the only logical conclusion, to me, is that they see revenue potential on monetizing API access, and 3PAs just happen to be in the blast radius. I'm not saying they'll ultimately be right. All I'm saying is, on its face, it does make sense.
jjulius 3y ago
>And now tell me again that the Reddit Blackout had now effect. So, no, the blackout did not cause this drop in valuation. I'd urge you to read the article before shooting from the hip. From the article: >Fidelity Blue Chip Growth Fund valued its holdings in Reddit at $15.4 million as of May 31, according to the fund’s monthly disclosure released Friday. That’s down 7.36% from $16.6 million mark at April’s closure and altogether a slide of 45.4% since its investment in August 2021. Followed by: >(Worth noting that the vast majority of markdown in the value of Reddit and Discord holdings by Fidelity predominantly occurred last year.) So, May 31st is when they dropped the value of Reddit. That's prior to the blackout chaos, which occurred in June. Apollo didn't receive notice of the cost changes until the 31st, and didn't announce it was shutting down until the 8th. The blackout occurred after those dates.
- gremlinsinc 3y ago
  So, the blackout devaluation is likely magnitudes higher, considering daily ad center traffic dropped substantially since the blackout as advertisers are weary of advertising on the toxic site now. Also considering the Reddit brand which IMHO rightfully was way better than the rest of social media (at least until recent events), has now started to make Facebook look good. The CEO is acting like a Musk fanboy who drank the Kool aid, and is modeling his social media company after a company ran by a guy who's worked administering a social media company for less than a year. I mean, verdict is out on if Twitter will go up or down in value. Why hitch yourself to that train?

And now tell me again that the Reddit Blackout had now effect. How can the Reddit CEO not be fired?

by bhaak 3y ago

And now tell me again that the Reddit Blackout had now effect. How can the Reddit CEO not be fired?

the_shivers 3y ago

Doesn't Discord's valuation dropping just as much suggest the decline may not be driven by protesters?

AdamN 3y ago
yeah, this seems like a mark to market change (the market just isn't paying as much as it used to) and is lagging by a few months. The impact of the blackout hasn't been quantified yet by investors and probably not even internally at this point.
- zirpderp 3y ago
  if I were on the board I would be voting to fire him asap. you've successfully fomented a site wide revolt in the year you're trying to IPO. unacceptable.
  - edgyquant 3y ago
    The board probably forced him to do it
Stranger43 3y ago
Given that the reason there were protest was that reddit wanted to monetize a part of their platform that was not generating ad revenue those two things could be completely related. if reddit cannot monetize their users, either as a product to sell to advertisers or by converting them to paying customers it's might not be viable as a profitable business.

BaseballPhysics 3y ago

It had no effect. These write downs are likely a byproduct of the macro environment. The cheap money has run out and the stock market is taking a hit as interest rates have climbed. Fidelity's valuations reflect what they believe they can sell their share for, and now they believe they'd sell it for less. If anything, my bet is Spez has been seeing that writing on the wall for a while (either because he read the tea leaves or because of signalling from Reddit's investors) and the API pricing changes are part of a desperate strategy to boost cashflow and hopefully goose their valuation in advance of a hoped-for IPO.

hightrix 3y ago
If the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business, then the incompetence in reddit is stronger than I previously imagined. Every single move they have made regarding this change has been the wrong one. Incompetence is reddit's lifeblood, from an outside perspective.
- BaseballPhysics 3y ago
  > If the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business... I can't think of a good reason to want to put 3PAs out of business given, based on what we know, those users represent a small minority of total Reddit users (and therefore a small fraction of ad impressions). So the only logical conclusion, to me, is that they see revenue potential on monetizing API access, and 3PAs just happen to be in the blast radius. I'm not saying they'll ultimately be right. All I'm saying is, on its face, it does make sense.

jjulius 3y ago

>And now tell me again that the Reddit Blackout had now effect. So, no, the blackout did not cause this drop in valuation. I'd urge you to read the article before shooting from the hip. From the article: >Fidelity Blue Chip Growth Fund valued its holdings in Reddit at $15.4 million as of May 31, according to the fund’s monthly disclosure released Friday. That’s down 7.36% from $16.6 million mark at April’s closure and altogether a slide of 45.4% since its investment in August 2021. Followed by: >(Worth noting that the vast majority of markdown in the value of Reddit and Discord holdings by Fidelity predominantly occurred last year.) So, May 31st is when they dropped the value of Reddit. That's prior to the blackout chaos, which occurred in June. Apollo didn't receive notice of the cost changes until the 31st, and didn't announce it was shutting down until the 8th. The blackout occurred after those dates.

gremlinsinc 3y ago
So, the blackout devaluation is likely magnitudes higher, considering daily ad center traffic dropped substantially since the blackout as advertisers are weary of advertising on the toxic site now. Also considering the Reddit brand which IMHO rightfully was way better than the rest of social media (at least until recent events), has now started to make Facebook look good. The CEO is acting like a Musk fanboy who drank the Kool aid, and is modeling his social media company after a company ran by a guy who's worked administering a social media company for less than a year. I mean, verdict is out on if Twitter will go up or down in value. Why hitch yourself to that train?