Reddit becomes reddit Inc.

#1

Post by markgx » Tue, Sep 06, 2011, 6:30 PM UTC

Reddit becomes reddit Inc.
blog.reddit.com

Re: Reddit becomes reddit Inc.

#2

Post by thurn » Tue, Sep 06, 2011, 6:56 PM UTC

Can someone with more business know-how tell me how a company like Condé Nast benefits from making Reddit an incorporated subsidiary? It doesn't sound like all that much is changing, honestly.

Re: Reddit becomes reddit Inc.

#3

Post by mibbit » Tue, Sep 06, 2011, 6:59 PM UTC

thurn wrote: post #2

Can someone with more business know-how tell me how a company like Condé Nast benefits from making Reddit an incorporated subsidiary? It doesn't sound like all that much is changing, honestly.

From the other posted article it looks like it will make it easier for them to start selling it off...

"The move comes after Conde talked to several investors about selling off a chunk of the company as part of the spinout;"

Re: Reddit becomes reddit Inc.

#4

Post by nohat » Tue, Sep 06, 2011, 7:01 PM UTC

Sounds like they may be making it more attractive as an aquisition target.

Re: Reddit becomes reddit Inc.

#5

Post by pointyhat » Tue, Sep 06, 2011, 7:05 PM UTC

Perhaps it's dying and they are trying to cut it loose first.

Re: Reddit becomes reddit Inc.

#6

Post by cowkingdeluxe » Tue, Sep 06, 2011, 7:10 PM UTC

Seems like what happened to digg. Didn't Digg balloon to 75+ employees at one point? I wonder if Reddit is going to head down that same route.

Re: Reddit becomes reddit Inc.

#7

Post by jacoblyles » Tue, Sep 06, 2011, 7:11 PM UTC

mibbit wrote: post #3

thurn wrote: post #2

Can someone with more business know-how tell me how a company like Condé Nast benefits from making Reddit an incorporated subsidiary? It doesn't sound like all that much is changing, honestly.

From the other posted article it looks like it will make it easier for them to start selling it off... "The move comes after Conde talked to several investors about selling off a chunk of the company as part of the spinout;"

Selling a minority stake to outside investors is a good way to capitalize the company and give it the resources it needs to grow. Reddit has been notoriously resource-starved. A few hundred million dollars in a partial equity sale fixes that without draining Conde Nast.

Re: Reddit becomes reddit Inc.

#8

Post by kn0thing » Tue, Sep 06, 2011, 7:12 PM UTC

cowkingdeluxe wrote: post #6

Seems like what happened to digg. Didn't Digg balloon to 75+ employees at one point? I wonder if Reddit is going to head down that same route.

As long as I'm on the board, I'll do everything I can to stop any nonsense like that.

Re: Reddit becomes reddit Inc.

#9

Post by barredo » Tue, Sep 06, 2011, 7:14 PM UTC

So. Who will end up buying this new reddit with high traffic and lots of user affection?

How much? I'd say 50M$ would be adequate.

Re: Reddit becomes reddit Inc.

#10

Post by specto » Tue, Sep 06, 2011, 7:14 PM UTC

kn0thing wrote: post #8

cowkingdeluxe wrote: post #6

Seems like what happened to digg. Didn't Digg balloon to 75+ employees at one point? I wonder if Reddit is going to head down that same route.

As long as I'm on the board, I'll do everything I can to stop any nonsense like that.

Good luck, it looks daunting.