Reddit to Raise Capital, Valuing Company at $1.7 Billion or 85 Times Sales

The_Real_Fly's picture

 

Content originally published at iBankCoin.com

Bloomberg is reporting that Reddit was seeking to raise $150m in new funds, placing the company's valuation at a staggering $1.7b. This sounds like a fucking bargain, especially when considering the immense traffic on the site -- which is now ranked #4 in America and #8 worldwide.

However, according to ReCode, the company barely made $20m in revenues in 2016 -- which is an utter and complete disgrace.

The last time Reddit raised capital was in 2014, $50m at a $500m market cap.

At $1.7b, private markets, led by Peter Thiel, Y Combinator, Marc Andreesen and the rest of the usual fuckheads, Reddit is valued at 85x sales, or twice that of Snapchat's.

I can't wait to buy the IPO.

From a publisher's standpoint, I have fixed feelings with the platform. On one hand, there isn't a better place to find news and information than on Reddit these days. It's even better than Twitter. However, they have super strict anti-spam rules, run by draconian moderators, who'll ban your site in a blink of an eye if they get to thinking you're trying to spam them. I get it. Who wants to get bombarded with bullshit content by publishers shilling for clicks? On the other hand, and unlike Twitter, it's hard to get content shared on the platform, without using cloaking methods that feel nefarious and unbecoming of a gentleman of extreme honor.

In short, I hope the cannibals who run Reddit get maimed in a fire.

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Sudden Debt's picture

I don't know anybody who uses reddit

and at that ipo price, it's more than most producing companies... that makes you think... we don't value real things anymore...

we only value the thiefs of personal information...

and we admire them....

 

Just block all your personal info and more then 50% of the sites you want to visit block you... I mean... the internet used to be free...

now it's the den of thieves.

website developpers need to install plugins that steal your customers personal info when they visit your site????

There's not a lot of people who know this shit! All the social media hubs steal info through websites that aren't their own websites!

And these guys make a shitload of money while they should actually be thrown in jail!

equity_momo's picture

Reddit will be dead soon enough.  The mods are facists in every sense of the word (i do enjoy how wiki has the definition of facism as only being a right-wing thing....lol)

Only making $20m shouldnt be a problem though. I didnt realise profit mattered for IPOs or trendy tech companies.

Rhetorical's picture

I like the tool and DIY subreddits on there they are extremely useful for getting initial info or ideas. That being said they have a massive problem with censorship that is deeply troubling when it comes to some of their more controversial subreddits. They take a hammer to right wing subs specifically which, while I am not right wing, I find disgusting. Its so bad many of the subs have backup channels with info saved on places like voat or their own servers just in case the banhammer hits their sub.

 

Edit: Thei news subs are also horribly censored and completely useless other than as a way to find out what way the echo chamber is supposed to sound like.

montresor's picture

Reddit is for niggers turn it off

quesnay's picture

85x sales. SALES! Let that sink in just a bit. Not 'profit', which is deeply negative obviously, but 'sales'!

BTW, Reddit has been around since 2005, but I'm sure they're ready to make their 'big' move into profit any day now. Any day now ...

aPocketofResistance's picture

I can't wait to short the fuck out of it.

any_mouse's picture

Reddit has Sales Revenue?

quesnay's picture

That was my exact thought to.

oldguyonBMXbike's picture

Fuck Reddit. It's run by pedophiles and cannibals who censor everything. You couldn't pay me to use it.

VK's picture

Why not? Where there's a rich idiot, there's money to part ways with.

U4 eee aaa's picture

There is a better place to find news. That is zerohedge. I used to go to reddit until I realized that all you really get there is leftist smugness that thinks they have arrived when they haven't really accomplished anything

djsmps's picture

Seven years ago zerohedge was a good place for news.

max_leering's picture

what a bargain!... c'mon people, can't you see value when it's right in front of you?... Buy! Buy! Buy!!!

Anarchyteez's picture

85 times. Valuation is dead.

In today's world it's a manias mania.

Anon2017's picture

At the peak of the dot com era, Palm, Inc. was valued by the market at $50 billion. The market isn't always efficient or correct.

MrBoompi's picture

This is 85x sales!  If they were looking for investors based on profits they'd have to pay you to take the fucking stock.  Modern day tulip mania.  

vxpatel's picture

not if they know what they are doing, then 85x is peanuts. for example, what if they cracked a code that allow them to control all markets, all instruments? like 1 of these firms based in India...

www.preqin.com/item/private-equity-online/1/11563