Reddit @lemmy.ml Einar @lemmy.ml 1 yr. ago

Fidelity deepens valuation cut for Reddit and Discord

techcrunch.com Fidelity deepens valuation cut for Reddit and Discord

Fidelity has further slashed the estimated worth of its holdings in Reddit and Discord as well as SaaS startup Gupshup.

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Reddit burned through their funds raised in two years and aren't profitable. Protest or not that's going to drop a valuation. Going public has been mandated, but it's probably not going to bring the payout investors were hoping for, the market isn't excited about tech companies that are advertising focused and can't make a profit.
- ...and instead of rallying around a sense of shared community (as false as that ultimately may have been) to make an IPO "interesting" to future investors, the reddit royalty decided to sh!t on the userbase like the vessels they are always believed us to be.
  
  Third party apps were always probably going to be killed as they couldn't monetize those users and it's likely a large chunk of their heavy users. Reddit's ad revenue is garbage compared to it's reported users. They definitely could have tried to be a bit more diplomatic about it though.
This valuation is actually only as of May 31st, released a month later. If we want to see the impact of their shenanigans, we wait another month to see what they value it today.
FTA:

The updated share value suggests a $5.5 billion valuation for Reddit. […]

[…] currently grappling a revolt from moderators of some popular subreddits over API cost changes, was valued at $10 billion when the social media giant attracted funds in August 2021.
Now just imagine for a moment, the same company in the late 2000s taking a completely different path. Imagine they offered the moderators to become worker-owners and Reddit became a cooperative rather than investor owned.

Imagine how much better the world would have been, and weep for the timeline capitalism just extracted from everyone.

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