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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[–]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.