this post was submitted on 13 Jun 2023
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Reddit Migration

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### About Community Tracking and helping #redditmigration to Kbin and the Fediverse. Say hello to the decentralized and open future. To see latest reeddit blackout info, see here: https://reddark.untone.uk/

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Reddit CEO tells employees that subreddit blackout ‘will pass’ (www.theverge.com)
submitted 1 year ago by Kara@kbin.social to c/RedditMigration@kbin.social
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Spez, and Reddit as a whole is basically counting on most subreddits opening back up tomorrow after the 48-hour period.

Really hope that mods can hold out for longer, make them really panic.

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[–] SmolderingSauna@kbin.social 1 points 1 year ago (14 children)

This just in from forbes.com:

"Investors are fed up. Fidelity, which led Reddit’s $700 million funding round in 2021 with a $10 billion valuation, has cut its Reddit company valuation by 41% since it invested. This could scupper Reddit’s plans to eventually go public with a reported valuation of $15 billion."

https://www.forbes.com/sites/qai/2023/06/13/redditors-go-to-war-with-the-company-as-it-enforces-eye-watering-prices-for-reddit-api/

Who actually loses a game of chicken of this magnitude?!? u/spez, you listening?!?

[–] ErraticDragon@kbin.social 0 points 1 year ago (3 children)

Note that this cut in valuation has nothing to do with the blackout. It's actually old news. Forbes did mention it in their most recent article, but the majority of the drop in valuation was last year.

https://techcrunch.com/2023/06/01/fidelity-reddit-valuation/

Fidelity, the lead investor in Reddit’s most recent funding round in 2021, has slashed the estimated worth of its equity stake in the popular social media platform by 41% since the investment.

Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, according to the fund’s monthly disclosure released over the weekend. That’s down 41.1% cumulatively since August 2021 when the asset manager spent $28.2 million to acquire the Reddit shares, according to disclosures the firm has made in its annual and semi-annual reports. […]

The substantial markdown of Reddit’s value by Fidelity predominantly occurred by the previous year. Nevertheless, it merits pointing out that Fidelity has persistently implemented minor reductions in the worth of Reddit’s shares in the ensuing months.

[–] Kimcha87@kbin.social 0 points 1 year ago

Thank you for stressing this. It should be higher up.

[–] SmolderingSauna@kbin.social 0 points 1 year ago (1 children)
[–] ErraticDragon@kbin.social 0 points 1 year ago

No. I mentioned that:

Forbes did mention it in their most recent article, but the majority of the drop in valuation was last year.

The "new" valuation, 41% lower than their investment, was announced in April 2023.

[–] futzwizzle@kbin.social 0 points 1 year ago

correct but the drop in valuation is what spurred the API fees and subsequent backlash. This will cause valuation to drop further.

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