[CamelCaseName]

> worth $60 million on an annualized basis

Reddit is pulling out all the stops for their upcoming IPO and it still amounts to nearly nothing.

Bringing back r/place to juice user count, killing the API, destroying their mobile site, and that's just the start.

That's why they are only planning a "very small float", there's simply no interest.

It seems even at just $5 billion, the valuation is too rich.

[data-ottawa]

I'm not surprised they made this deal, but $60M feels low for the cost of killing their 3P APIs.

I can only assume the price is because the license is non-exclusive and they think they can get other big fish to bite.

They can offer higher quality and more timely data than scrapers can, so there is a value proposition there.

[ametrau]

Killing the api was a massive mistake. They should have worked with appolo et al to broker a deal. They had a the best of both worlds, other people tackling the app development for them and they just needed to take a reasonable rent.

[antisthenes]

I'm actually curious if Reddit's going to be the first successful example of monetizing what is essentially a community into an IPO fast enough before normies get on it and start flooding it with their low-effort takes and celebrity gossip drivel.

I know this is possible to do by other communities like paid forums (SomethingAwful), or grow into an adjacent e-commerce supported community (e.g. bodybuilding forums), but is it possible to do it on Reddit's scale? We'll see.

I have no horse in the race either way, most of my posts on there are from the Reddit vs Digg era, so I'm not really invested.