• morganth@discuss.tchncs.de
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      1 year ago

      That’s not them actually losing money, though. They’re a private company, not a public one. Their valuation is just what analysts think that they’re worth—it has nothing to do with how much money they have.

      • ThatGirlKylie@lemmy.world
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        1 year ago

        True, but the valuation is for investors and per fucknut, Reddit isn’t making any money, hence the api push to a paid platform.

        Also, Reddit is going public soon when they IPO and investors aren’t going to want to invest in a bot ridden, non active community.

        I’d say 75%+ used Reddit on their phones and many of them used 3rd party apps.

        The point is, Reddit IPOing soon and then this fiasco is the worst thing for them.

      • gsfraley@vlemmy.net
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        1 year ago

        But valuation is a very real predictive measure on IPOs, and what Reddit is making all these bad decisions in preparation for. They tried to cut a little more pie by dragging third party app users onto their app to try and increase revenue and bump valuation, it’s just that it was so terribly misguided and executed that it had the opposite effect and blew up in their face.

        • zeppo@lemmy.world
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          1 year ago

          It could also be accounting tricks. If they pay themselves a bunch of money, reddit inc. doesn’t make a profit, but the individuals working for it do.

      • burningmatches@feddit.uk
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        1 year ago

        Private companies (which is most businesses) are still worth something. If big investors like Fidelity value your business at $1bn, banks will absolutely consider that as collateral for loans and so on. And if they say your business has halved in value, they’ll consider that too.

    • Paradox@lemdro.id
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      1 year ago

      That valuation cut was from before the whole shitstorm. We’ve yet to see the impact that this has all had on them, but given the attempts to crush the protests by the reddit admins, when they’ve just sort of ignored this stuff in the past, its likely not good

          • Hiccup@lemmy.dbzer0.com
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            1 year ago

            They tumblr’d themselves and they haven’t even 100% gotten to the porn part. I hope all the only fans people on reddit have backups and start jumping ship.

    • CumLizard19@lemmy.world
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      1 year ago

      And if I remember correctly that value cut was from before all this happened so it’s probably fixin to drop even more

      • Morose mammal@lemmy.fmhy.ml
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        1 year ago

        Here’s hoping. (yeah, I’m an unreasonable, hateful bitch. I despise what they did with the Apollo dev (and others) and I hope it bites them in the arse.)

        • aggressiveavocado@lemmy.world
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          1 year ago

          I wish it lives. May we never forget Aaron’s dream for the platform. May we never forget it. It’s my goal in life to carry on in his and other’s footsteps so we may use what we have made to help others.

            • glockenspiel@lemmy.world
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              1 year ago

              He definitely would have been all about ActivityPub, if not involved with bringing it about. Still amazes me that he was one of the inventors of RSS, arguably a proto-ActivityPub.