this post was submitted on 07 Jan 2024
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Now the social media platform is aiming for an IPO in the first quarter of 2024 with a valuation of $15 billion, and has been in talks with potential investors like Goldman Sachs and and Morgan Stanley, per Bloomberg.

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[โ€“] [email protected] 86 points 9 months ago* (last edited 9 months ago) (4 children)

These valuations on companies that use cloud hosting for delivering video like reddit does is fucking imaginary. Reddit does not have enough of it's own infrastructure to justify a $15 billion valuation. It's ephemeral in the end.

[โ€“] [email protected] 45 points 9 months ago (1 children)

The value is in IP and eyeballs, not physical assets.

[โ€“] [email protected] 33 points 9 months ago* (last edited 9 months ago) (2 children)

I get it, but like I said, that's ephemeral. Compare that to say Meta or alphabet with YouTube. They have distinct advantages in serving their content that prevents them from completely losing out. Then you've got Reddit, who pays hosts that could decide themselves to spin up a competing service pretty quickly and already isn't profitable due to those harsh hosting costs and isn't particularly stand out in its advertising business compared to those two.

[โ€“] [email protected] 2 points 9 months ago

Well YouTube is worth far more than even this valuation, so that tracks. There have been many competing services (like the one we're on, and Voat) but none of them have put a dent in Reddit's ability to serve ads to a huge number of eyeballs. I wouldn't invest in it but to suggest it's valueless because they don't own their servers is a stretch.

[โ€“] [email protected] 5 points 9 months ago

Also, its now a dogs breakfast too. Whenever I drop by there, a lot of the subreddits have become ultra right wing and weird or bot infested, where even the aussie subs are pro-gun zones now (despite very few people in AU actually giving a toss about guns).

It went from being somewhat toxic to toxic all over. And the only people who will want to buy it, will be asking for more ads, more posts which are actually adverts, and more BS.

There are so many alternatives to Reddit now too (like lemmy) which are likely to slowly eat into it's market share

[โ€“] [email protected] 4 points 9 months ago

The dollars are ephemeral too ๐Ÿ˜

[โ€“] [email protected] 1 points 9 months ago (1 children)

That is not important. They sell attention from millions of users to advertisers, just like Facebook, google, YouTube, TikTok, ...

[โ€“] [email protected] 1 points 9 months ago* (last edited 9 months ago)

Every single group you listed selfhosts and uses local data centers to reduce transit fees. It's very important because it's how you handle the costs on your business model. Ad revenue generally forces you to operate on tight operating margins. Compare that to another cloud hosting utilizing video provider that nearly sunk despite being quite popular: Vimeo. If you think this stuff is not important, see Twitch's exit from Korea over transit fees.