Reddit becomes reddit Inc. • Hacker News Board

Re: Reddit becomes reddit Inc.

#11

Post by gyardley » Tue, Sep 06, 2011, 7:18 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.

I suspect Condé Nast's advertising operations didn't mesh well with Reddit's audience. Within Condé Nast, they were likely just an irritating drain on resources.

If Reddit's going to monetize effectively (and that's a big 'if'), it needs to be operationally independent so it can get creative.

Re: Reddit becomes reddit Inc.

#12

Post by dkokelley » Tue, Sep 06, 2011, 7:18 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.

Instead of Reddit being a division on the Org. chart of C.N., Reddit Inc. shares are held by C.N. This means that Reddit can take on equity investors to finance operations and operate externally of any organizational influence Conde Nast had (which may not have been much anyways).

Re: Reddit becomes reddit Inc.

#13

Post by jkaljundi » Tue, Sep 06, 2011, 7:19 PM UTC

barredo wrote: post #9

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.

Would be really amazed if Reddit would sell so low, considering their fast-growing visitor numbers. http://blog.reddit.com/2011/09/how-reddit-works.html

Re: Reddit becomes reddit Inc.

#14

Post by cryptoz » Tue, Sep 06, 2011, 7:20 PM UTC

pointyhat wrote: post #5

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

I can't tell if you're serious or not. In case you are...what makes you think reddit is dying? All indications point to continued explosive growth. I've been on reddit for about 5 or 6 years and it's pretty clear the site goes through growing pains but consistently gets over them. Overall it is better and better every day, with more lively intelligent discussion than even in the beginning days.

Re: Reddit becomes reddit Inc.

#15

Post by gigantor » Tue, Sep 06, 2011, 7:20 PM UTC

pointyhat wrote: post #5

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

They're currently experiencing explosive growth: http://soshable.com/reddit-traffic-has-exploded-in-12-months...

They have also, in my opinion, implemented mainstream and niche news so well (via subreddits) that they're not in immediate danger of being replaced by another aggregate news and/or niche site.

Re: Reddit becomes reddit Inc.

#16

Post by staunch » Tue, Sep 06, 2011, 7:28 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.

My first thought when they said you were on the board was "Well at least we'll have an honest witness to the train wreck that's likely to ensue."

I really hope they actually listen to you. Would you consider taking the CEO job there? Best possible outcome.

Re: Reddit becomes reddit Inc.

#17

Post by evan_ » Tue, Sep 06, 2011, 7:29 PM UTC

gigantor wrote: post #15

pointyhat wrote: post #5

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

They're currently experiencing explosive growth: http://soshable.com/reddit-traffic-has-exploded-in-12-months... They have also, in my opinion, implemented mainstream and niche news so well (via subreddits) that they're not in immediate danger of being replaced by another aggregate news and/or niche site.

>They're currently experiencing explosive growth

so was Digg, and Fark before it, and Slashdot before that.

Am I wrong? History shows that these sites are basically popular for a certain amount of time, and then they lose huge market share when they inevitably do something to sour the community-at-large (like trying to monetize).

Re: Reddit becomes reddit Inc.

#18

Post by dchuk » Tue, Sep 06, 2011, 7:30 PM UTC

pointyhat wrote: post #5

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

In terms of traffic and user base, they're killing it. In terms of revenue (and most importantly, profit), I'm sure they've been a massive let down for Conde Nast.

Now they spun them out so other people can finance it without it being their sole burden.

Re: Reddit becomes reddit Inc.

#19

Post by markkat » Tue, Sep 06, 2011, 7:31 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.

Usually, I wouldn't put much stake in a statement like that. But for you sir, I make an exception.

Best of luck, and congratulations.

Re: Reddit becomes reddit Inc.

#20

Post by citadrianne » Tue, Sep 06, 2011, 7:32 PM UTC

nohat wrote: post #4

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

You underestimate the ability of a large media company to squash innovation and morale. They might get outside investment so they can iterate harder/better/faster but Advance wants to hold onto this goldmine.

From http://www.betabeat.com/2011/09/06/a-startup-is-reborn-reddi...:

Greater independence will mean reddit can go to a new board, which includes reddit OG Alexix Ohanian, who had been serving as an “advisor,” as well as representatives from Conde and Advance, with proposals instead of jockeying within Conde’s budget. Reddit doesn’t plan to seek outside funding at this time, Mr. Martin said, but it’s not out of the question. “It’s a lot more more of a startup,” he said. “It’s able to happen faster with less overhead.”