Reddit is owned and controlled by VCS who have been finding out playground in the hopes of future profits. We all know and understand the game. They hoped they built a website where the users were assets. The Reddit users think they are assets. However, it Reddit can’t make a profit off of them. They aren’t assets they are liabilities.
Any site wanting to replace Reddit would need either someone with a sizeable amount of cash to fund it or VC money. Realistically, this is the week where we find out if Reddit users are assets or liabilities. If they’re liabilities who wants to fund a replacement?
What happens is they can’t make money off the API? I would presume cancel the IPO and make mass layoffs, cut everything to the barebones and make money that way. VCS will make their money while the site burns.
However, what will Redditors do? Go to a bunch of small communities where the group knowledge is smaller and not as good.