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Reddit CEO tells employees that subreddit blackout ‘will pass’
(www.theverge.com)
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this post was submitted on 13 Jun 2023
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This just in from forbes.com:
"Investors are fed up. Fidelity, which led Reddit’s $700 million funding round in 2021 with a $10 billion valuation, has cut its Reddit company valuation by 41% since it invested. This could scupper Reddit’s plans to eventually go public with a reported valuation of $15 billion."
https://www.forbes.com/sites/qai/2023/06/13/redditors-go-to-war-with-the-company-as-it-enforces-eye-watering-prices-for-reddit-api/
Who actually loses a game of chicken of this magnitude?!? u/spez, you listening?!?
Note that this cut in valuation has nothing to do with the blackout. It's actually old news. Forbes did mention it in their most recent article, but the majority of the drop in valuation was last year.
https://techcrunch.com/2023/06/01/fidelity-reddit-valuation/
correct but the drop in valuation is what spurred the API fees and subsequent backlash. This will cause valuation to drop further.
Thank you for stressing this. It should be higher up.
Quote is from today's piece here https://www.forbes.com/sites/qai/2023/06/13/redditors-go-to-war-with-the-company-as-it-enforces-eye-watering-prices-for-reddit-api/
It is ALL about the Blackout...
No. I mentioned that:
The "new" valuation, 41% lower than their investment, was announced in April 2023.
The surefire way of getting your ass in trouble: Pissing off rich, powerful people.
That said, it would be such poetic justice if WSB somehow ate reddit's tail because of this.
The app owners will work with him to prevent AI training from taking data from the site for free. And any issues the third party apps have doing that will be shared by the official app. They're not special in that regard. You can't really have public secrets behind a paywall. It doesn't really work.
There are many, many options here that are only being held back by Huffman's ego. Imagine losing billions in valuation because of personal ego. I bet investors are thrilled.
It's not just his ego but also his incompetence which has been very apparent for his entire tenure. I really don't get how they've be never managed to find someone who's up to the job.
Isn’t it entertaining to watch?!! I’ve gone through a few bags of popcorn over the course of the last few days🍿🍿
"ARE YOU NOT ENTERTAINED?" - Huffman, probably
I’m not surprised that Fidelity is losing faith in Reddit. The way Steve completely alienated the whole community, well he's basically shooting himself in the foot.
Also he admitted they don't make money and said they need to be profit driven til they do.
To me that says he's not sure this will actually make Reddit profitable; so looking at it from a detached, "I just care about the money" perspective I'd be really nervous about investing in Reddit. Feels like Spez would just light it all on fire.
They really need someone competent at the helm.
Competence runs a distant second to “trustable” at this point. Spez has shown he can’t be trusted.
Clearly he hasn't for even a brief moment.