[minimaxir]

This acquisition is...unusual. I strongly suspect it's not a 10x exit. (last raised $15M in 2019: https://www.crunchbase.com/organization/spell )

Reddit obviously has the data for robust machine learning, but not sure how an experiments-management startup aligns with it unless it's an acquihire.

[phphphphp]

Acquihire.

"Our next challenge is to apply what we’ve built to improve the user experience for redditors"

"we’ll no longer be signing up new commercial customers to the Spell service"

https://spell.ml/blog/spell-joins-reddit-YqtKRhEAACMAgbU9

[ilrwbwrkhv]

Do the founders get any money out of it or not much.

[bombcar]

Depends on the deal, but if the founders are in control and the company wasn't death-spiraling, they usually do decently well (but not so well that they immediately quit their new job).

[kvdveer]

Assuming the founders are stock holders, they agreed to part with their share. Its unlikely that they were persuaded to do so without the promise of a significant payout.

[PhoenixReborn]

Disclosure: former Reddit employee

It's definitely an acquihire. MLOps has been one of Reddit's weaker areas historically, so this acquisition makes sense to get a talented team in with a clear understanding of the space.

[agnos]

This is the only explanation that makes sense. This strategy in general seems a bit short-sighted though. I suspect engineer retention is going to drop off a cliff after whatever acquisition bonuses have paid off.