Earlier quoted context omitted.
Reddit's valuation is insane right now, they got in before the "correction" so it's at some absurd multiple. Anyone trying to buy Reddit would need to basically lowball the hell out of them and make the case that an IPO will only be worse (which may or may not be true).
is this correct? It doesn't sound right. It last raised money at $10B in 2021, but Fidelity, who led that round have since cut that valuation on their own books back to $6B. I would not be surprised if that is a conservative number. The market has moved and reddit hasn't been going in the right direction. While that's still a lot of money, it is unprofitable, so a trade sale would make some sense. The real issue is t…
That said, I also don't think they're willing to accept the idea that even $6B might be high, so I don't think anyone would be successful with a meaningfully lower offer.