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Reddit valued at $6B on a $250M round

reuters.com

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Re: Reddit valued at $6B on a $250M round

#101
post #80
post #63

Reddit is an intentionally designed dopamine machine with some areas of usefulness. There are pockets of great, high signal communities on Reddit that have not been unbundled. Discovery, however, is a mess. Some examples of some great subs: - HomeImprorvement is great for repair advice - Keto was helpful in my weight loss journey - Posture for, well, fixing my posture I've also bought and sold various digital and phy…

Reddit is a company that made people moderate their content for free. You don't need to know sub names to get some use of it. I append "reddit" to probably 1/3 of my search engine queries. Especially useful when looking for product recommendations.

>looking for product recommendations

This is the trick I use too; but I found the result still isn't great enough for a few reasons.

1. People seem have a tendency to recommend products/brands that are niche or "in minority". Like some obscure ones that scratch particular itch for that user (and often expensive and hard to find). This is totally fine on its own, but you want to have the big picture (i.e. learn about the most popular ones) first when researching a new product.

2. The number of the answers is often so low (and most would have 1 digit upvotes) that it's very hard to judge when there is conflicting info.

3. People often just list the brand/name, without much more information.

4. you can't even sure if these answers are genuine (instead of marketing/soft advertisement).

Still, probably much better than anything else that can be easily found in general search.

Re: Reddit valued at $6B on a $250M round

#102
While I would never be one to question the value and power of internet forums to facilitate meaningful social interaction, I do question that this value can (or should) be realized by financial markets. This makes me very concerned that the social capital harbored on the site will be transmutated into revenue via advertising models and thereby be diluted or even extinguished.

Re: Reddit valued at $6B on a $250M round

#103

I wonder why Zuck isn't buying it. He dropped 19B on whatsapp. Surely reddit is a good deal at 6B??

If he wants this to go away, he should wait a while before buying a popular social media firm:

https://www.ftc.gov/news-events/press-releases/2020/12/ftc-s...

Re: Reddit valued at $6B on a $250M round

#104
post #87

Reddit is a top ten site in the US, but is valued at a fraction of its competitors. The main worry I have for reddit moving forward is how do you monetize a userbase that is HIGHLY resistant to change. They're pushing heavily into their new mobile app, which is a solid start as an ad platform, but the old crowd on reddit all came from Digg after Digg tried to change their model to support more revenue. Their users wi…

That's such ancient history I would bet most of the kids on there now never used digg.

Re: Reddit valued at $6B on a $250M round

#105
post #9

6 billion dollars seems cheap is my original thought but really it seems like a good amount. Reddit can't really expand a significant amount more(as evidenced by their moves into video) and the monetization is terrible(who wants to buy Reddit premium, or advertise on Reddit?)

My parents in their 60s have discovered that Reddit is a great source of research to get real humans talking about a variety of topics (basically what Quora aimed to be but never was). I strongly feel they're just getting started.

Lately I have been adding "reddit" to all the questions I ask google because I know some "real" person on reddit will have a relatable answer. I too feel this is untapped potential.

Re: Reddit valued at $6B on a $250M round

#106
post #91

I still dont understand how something like Reddit can be worth billions of dollars. It feels like such a random, empty number

A lot of people browse Reddit. The site/app shows them ads. Users click on those ads, and Reddit gets a cut. Reddit can also personalize the ads with information they collect about users as they use the site, thus getting more ad clicks and more revenue.

It is a pretty straightforward business model. Reddit is far from the first company with that valuation to successfully capitalize on it.

Re: Reddit valued at $6B on a $250M round

#107
Kevin Rose had a pretty epic Tweet about wanting to buy Digg and bring it back to its pre-redesign phase [1]. Mark Cuban wanted in on it and I seem to remember Alexis Ohanian responded in a new tweet. I don’t feel like going through his old posts to link to it.

I’d love a return to the old. Even if its just the social web version of reruns.

[1] https://twitter.com/kevinrose/status/1347747289511563265?s=2...

Re: Reddit valued at $6B on a $250M round

#108

Reddit at this point is a native advertising platform (not just the "promoted" stuff; much of the content on popular subs is astroterfing/native advertising too) with some "niche" communities that are always inferior (worse information, less informed members) than the equivalent StackExchange or dedicated website and message board that's been around for decades. It's a garbage website.

Reddit badges, btw, are a great example of native advertising. In addition to advertisers badging their native ads, I would guess that most badges on reddit are fake, either automatically awarded by the software to popular posts or given out arbitrarily by reddit staff, with the intent of giving users the impression that it's common for redditors to spend real money to "gild" or otherwise flair posts that they like,…

I think that the amount of gilded awards that are ironically given to posts on r/conservative from members of r/politics largely disproves the idea that people are unwilling to spend stupid amounts of money on what amount to shiny baubles. How much that makes of their revenue however, is only known by reddit.

Re: Reddit valued at $6B on a $250M round

#109
It was actually a YC listacle posted on here that brought to my attention the fact that Reddit is a YC seed(spring '05 I think)..and while reading that it all weirdly made sense. Though they may only coicidentally both be orange-banner headed forums...there is an uncanny,hmm, hackernews-iness to discourse on reddit.
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