Google should probably just buy Reddit and run it at a loss.
This may not be good for us the users, and might end up killing Reddit in the long run, but it's better for both Google and Reddit than the current situation.
This may not be good for us the users, and might end up killing Reddit in the long run, but it's better for both Google and Reddit than the current situation.
There's no "long run" any more for Google's touch of death, like there was for Google Groups; they've gotten quite good at speed-running value destruction.
That data was helpful, but if Reddit is blacked-out, or people move to more walled-off forums it makes future iterations of ChatGPT and the like more difficult to train on recent developments. Why not have OpenAI run Reddit as a way to get lots of moderated data into its models?
Anyone trying to buy Reddit would need to basically lowball the hell out of them and make the case that an IPO will only be worse (which may or may not be true).
Even if they IPO, wouldn’t the stock immediately crash if it’s overvalued?
Yes, this is effectively guaranteed at this point. The hope of the investors is presumably that they will be able to sell fast and early.
It doesn't sound right. It last raised money at $10B in 2021, but Fidelity, who led that round have since cut that valuation on their own books back to $6B.
I would not be surprised if that is a conservative number.
The market has moved and reddit hasn't been going in the right direction.
While that's still a lot of money, it is unprofitable, so a trade sale would make some sense. The real issue is that it comes with a lot of reputational baggage that a lot of public companies would not want.
That said, I also don't think they're willing to accept the idea that even $6B might be high, so I don't think anyone would be successful with a meaningfully lower offer.