Reddit Files to Go Public, in First Social Media IPO in Years (opens in new tab)

(nytimes.com)

33 pointstcmb2y ago23 comments

23 comments

16 comments · 6 top-level

nabla92y ago· 5 in thread

Valuation of $5 billion would buy P/S 6.3 with negative P/E for 18 year old non-innovating company that is already in the second phase of enshittification.

shitlord2y ago

The company actually would have been profitable in 2023 if it didn't pay out >$200M in combined compensation to the CEO and COO.

Edit: cfo -> coo

nabla92y ago

They didn't pay $200M.

They gave stock options. Actual pay is just few million.

1 more reply

Havoc2y ago

They might still pull it off anyway with their data play given AI hype

And by pull it off I mean original investors get out and someone else is left holding bag

nolok2y ago

It would be really surprising given that all of the data up to 2020 is already out there. They made a deal to give a firehose of data to an ai company and it was only for 60 million.

2 more replies

brodouevencode2y ago

This seems like a last ditch effort to make it relevant again.

paxys2y ago· 3 in thread

$5B is definitely a lot more realistic than the $15B valuation they were targeting in 2022, but IMO Reddit is still not a sustainable business as it stands today. So many investors have had their money tied up for over a decade will little to no growth and are going to be scrambling for an exit on IPO day. Revenues are barely growing, losses are increasing. I don't see a rosy future for this stock.

voytec2y ago

Unlikely sustainable without innovations. A payday for stakeholders and then popular-brand bagholders magnet, possibly a buy-rumor-sell-before-quarterly-report playtoy. I wouldn't expect UX increase and the question is how long the enshittification-revenue balance will be kept steady.

Accujack2y ago

They haven't innovated in years. The only real changes to reddit have been a cosmetic re-work and release of an app for mobile use.

Well, that and the API changes that drove away something like a third of the users.

ametrau2y ago

It’s run incompetently just at the moment. You have a golden opportunity right now with the enshittification problem. How many people put Reddit after the KW in search? If it’s opened up maybe it’ll get better management.

jallasprit2y ago· 2 in thread

The only thing that really has value at Reddit right now seems to be their giant archive of user generated posts. It is certainly going to be interesting come IPO day.

rchaud2y ago

They had a free dataset containing data up to 2020: https://www.reddit.com/r/bigquery/comments/kyjqbt/there_used...

Reddit is 90% noise, a lot of the content is going to be "meme reply" type comments, to topics posted by karma bots.

ametrau2y ago

This is the way

ChrisArchitect2y ago

[dupe]

More discussion on the official S1: https://news.ycombinator.com/item?id=39472782

tcmbOP2y ago

The S-1 filing: https://www.sec.gov/Archives/edgar/data/1713445/000162828024...

kromem2y ago

I always thought it would have been neat if the users themselves had pooled resources and bought it up.

It could have been extremely valuable, but at this point management has been clearly outed as having no idea what they are doing.

j / k navigate · click thread line to collapse

23 comments

16 comments · 6 top-level

nabla92y ago· 5 in thread

Valuation of $5 billion would buy P/S 6.3 with negative P/E for 18 year old non-innovating company that is already in the second phase of enshittification.

shitlord2y ago

The company actually would have been profitable in 2023 if it didn't pay out >$200M in combined compensation to the CEO and COO.

Edit: cfo -> coo

nabla92y ago

They didn't pay $200M.

They gave stock options. Actual pay is just few million.

1 more reply

Havoc2y ago

They might still pull it off anyway with their data play given AI hype

And by pull it off I mean original investors get out and someone else is left holding bag

nolok2y ago

It would be really surprising given that all of the data up to 2020 is already out there. They made a deal to give a firehose of data to an ai company and it was only for 60 million.

2 more replies

brodouevencode2y ago

This seems like a last ditch effort to make it relevant again.

paxys2y ago· 3 in thread

voytec2y ago

Accujack2y ago

They haven't innovated in years. The only real changes to reddit have been a cosmetic re-work and release of an app for mobile use.

Well, that and the API changes that drove away something like a third of the users.

ametrau2y ago

jallasprit2y ago· 2 in thread

The only thing that really has value at Reddit right now seems to be their giant archive of user generated posts. It is certainly going to be interesting come IPO day.

rchaud2y ago

They had a free dataset containing data up to 2020: https://www.reddit.com/r/bigquery/comments/kyjqbt/there_used...

Reddit is 90% noise, a lot of the content is going to be "meme reply" type comments, to topics posted by karma bots.

ametrau2y ago

This is the way

ChrisArchitect2y ago

[dupe]

More discussion on the official S1: https://news.ycombinator.com/item?id=39472782

tcmbOP2y ago

The S-1 filing: https://www.sec.gov/Archives/edgar/data/1713445/000162828024...

kromem2y ago

I always thought it would have been neat if the users themselves had pooled resources and bought it up.

It could have been extremely valuable, but at this point management has been clearly outed as having no idea what they are doing.

j / k navigate · click thread line to collapse