iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
17,114 Blog Posts

Reddit to Raise Capital, Valuing Company at $1.7 Billion or 85 Times Sales

Bloomberg is reporting that Reddit was seeking to raise $150m in new funds, placing the company’s valuation at a staggering $1.7b. This sounds like a fucking bargain, especially when considering the immense traffic on the site — which is now ranked #4 in America and #8 worldwide.

However, according to ReCode, the company barely made $20m in revenues in 2016 — which is an utter and complete disgrace.

The last time Reddit raised capital was in 2014, $50m at a $500m market cap.

At $1.7b, private markets, led by Peter Thiel, Y Combinator, Marc Andreesen and the rest of the usual fuckheads, Reddit is valued at 85x sales, or twice that of Snapchat’s.

I can’t wait to buy the IPO.

From a publisher’s standpoint, I have fixed feelings with the platform. On one hand, there isn’t a better place to find news and information than on Reddit these days. It’s even better than Twitter. However, they have super strict anti-spam rules, run by draconian moderators, who’ll ban your site in a blink of an eye if they get to thinking you’re trying to spam them. I get it. Who wants to get bombarded with bullshit content by publishers shilling for clicks? On the other hand, and unlike Twitter, it’s hard to get content shared on the platform, without using cloaking methods that feel nefarious and unbecoming of a gentleman of extreme honor.

In short, I hope the cannibals who run Reddit get maimed in a fire.

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4 comments

  1. sarcrilege

    WTF do they need $150m in new funds for? And what are they going to do with the new funds? Find more politically correct LGBTDJL:ASDFYXZXXZ self assigned gender-weird stupid pinko marxist millennial douche bags to censor articles and posts? Sad. Very sad.

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    • moonshot

      At some point the employees get upset if their paychecks are only in promises for IPO riches beyond their wildest dreams. They might actually have a few bills to pay in the meantime.

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  2. moosh

    Old man the fuck out of this tripe. I like it

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