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 (5 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?!?

[–] Serinus@kbin.social 1 points 1 year ago (2 children)

The app owners will work with him to prevent AI training from taking data from the site for free. And any issues the third party apps have doing that will be shared by the official app. They're not special in that regard. You can't really have public secrets behind a paywall. It doesn't really work.

There are many, many options here that are only being held back by Huffman's ego. Imagine losing billions in valuation because of personal ego. I bet investors are thrilled.

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

Isn’t it entertaining to watch?!! I’ve gone through a few bags of popcorn over the course of the last few days🍿🍿

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

"ARE YOU NOT ENTERTAINED?" - Huffman, probably

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

It's not just his ego but also his incompetence which has been very apparent for his entire tenure. I really don't get how they've be never managed to find someone who's up to the job.

[–] kai333@kbin.social 0 points 1 year ago

The surefire way of getting your ass in trouble: Pissing off rich, powerful people.

That said, it would be such poetic justice if WSB somehow ate reddit's tail because of this.

[–] 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.

[–] 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.

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

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

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

I’m not surprised that Fidelity is losing faith in Reddit. The way Steve completely alienated the whole community, well he's basically shooting himself in the foot.

[–] trekkie1701c@kbin.social 0 points 1 year ago (1 children)

Also he admitted they don't make money and said they need to be profit driven til they do.

To me that says he's not sure this will actually make Reddit profitable; so looking at it from a detached, "I just care about the money" perspective I'd be really nervous about investing in Reddit. Feels like Spez would just light it all on fire.

They really need someone competent at the helm.

[–] Spaceman2901@kbin.social 0 points 1 year ago

Competence runs a distant second to “trustable” at this point. Spez has shown he can’t be trusted.

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

u/spez, you listening?!?

Clearly he hasn't for even a brief moment.