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


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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.


U4 eee aaa Sun, 06/18/2017 - 10:59 Permalink

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

quesnay Sun, 06/18/2017 - 12:52 Permalink

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 ...

Rhetorical Sun, 06/18/2017 - 13:10 Permalink

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.

equity_momo Sun, 06/18/2017 - 13:35 Permalink

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

Sudden Debt Sun, 06/18/2017 - 14:28 Permalink

I don't know anybody who uses redditand 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 it's the den of 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!