Reddit Advised to Target at Least $5 Billion Value in IPO: "Separately, private trades of Reddit’s unlisted shares have valued the company below $5 billion. Potential buyers on Rainmaker Securities’ platform have submitted bids indicating a value of between $4.5 billion and $4.8 billion ..."

submitted by neolib from bloomberg.com

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[–]neolib[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Archived: https://archive.is/kUYtx

The valuations under consideration demonstrate the extent of tech’s retreat from the heady days of the private funding boom that peaked in 2021. Reddit raised funds that year at a $10 billion valuation, and could potentially have been valued as much as $15 billion in an IPO, Bloomberg News reported in 2022.

[–]NastyWetSmear 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (2 children)

What does the value represent, exactly? Advertiser value? I'd be interested to see the turnover between advertisements seen by people and actual clicks, let alone users vs ads seen, given you can block them. By the time that report was finished, I'd say you could buy Reddit for the cost of the servers... Slightly less, now that they are used and a little dirty.

[–]ActuallyNot 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Expected return on investment, normally.

[–]NastyWetSmear 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Well, yes, I understand THAT. What I mean is what does the value represent in as much as: "What is the expected method of getting money out of owning Reddit"? - Reddit doesn't charge to use it, it doesn't sell anything, it isn't a product unto itself. The most basic way to profit would be advertising, right? But I feel confident that, between bot users, users with Ad-Block, most sane people ignoring the Reddit ads and the remaining percentage of people who aren't blocking, are real, can be convinced to by something from a Reddit ad and have seen an ad for something they can afford and want being so tiny... It can't be worth, in reality, anywhere near 4 billion dollars.

[–]hfxB0oyA 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

A thing is worth what someone is willing to pay for it. Let's see what that number is for Reddit.

[–]RedditButt 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Like twitter, eventually the cat is going to get out of the bag that the site is 98% bots.