Reddit has never turned a profit in nearly 20 years, but filed to go public anyway
Reddit has never turned a profit in nearly 20 years, but filed to go public anyway
Reddit, the message board site known for its chronically online userbase and for originating much internet discourse, filed for its long-anticipated initial public offering on Thursday.
Reddit has never turned a profit in nearly 20 years, but filed to go public anyway::Reddit, the message board site known for its chronically online userbase and for originating much internet discourse, filed for its long-anticipated initial public offering on Thursday.
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Hoe does this work. If a company has not made a profit in 20 years. How is it not bankrupt?
You keep telling the next investor it'll be profitable soon. I believe the guy that came up with this scheme first went to prison or something, but afterwards we all collectively decided we were cool with it.
That's why they need to go public in the first place. Investors are like it's right now or you're shutting down, no more free money for you.
They've had investors who were willing to pay into a loss-making company. Could be that they sold investors on the idea that it will be profitable at some point in the future but it needs to be funded while it grows. Could also be that the value they see in it is not just financial - the ability to influence opinion, harvest data, stuff like that.