Business Fidelity has cut Reddit valuation by 41% since 2021 investment

https://techcrunch.com/2023/06/01/fidelity-reddit-valuation/

https://archive.is/fYGnj

Manish Singh@refsrc / 5:33 PM EDT•June 1, 2023


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.
Reddit was valued at $10 billion when the social media giant attracted funds in August 2021. Fidelity — which has marked down its stakes in many startups including Stripe and Reddit in recent quarters — also slashed the value of its Twitter stake, it disclosed in the filing, valuing Elon Musk’s firm at about $15 billion.

Reddit declined to comment.
This devaluation, part of a broader trend that has hit a variety of growth stage startups across the globe in the past year, raises uncertainties about whether Reddit will maintain its initial intent to reportedly go public at a valuation around $15 billion.
Reddit, which has raised over $1 billion to date, counts Sequoia Capital and Andreessen Horowitz among its backers.
The current wave of valuation cutbacks sheds new light on the impact of deteriorating worldwide economic conditions on fledgling startups. Despite the diminished funding activities for startups globally over the past year, valuations of numerous larger startups have stayed constant.

 

[xX_rAcE_wAr_420_Xx]

Until proven otherwise, I just assume all these stock valuation games are a way for rich people to trade shares of companies to groups that want to use them to shape public opinion. Oops, fire sale on Reddit, some political group buys up 20% and installs a director and suddenly the place is astro turfed to hell and back.

 

[Agamemnon Busmalis]

Need to raise interest rates another 4-5% to flush these turds for good.

 

[Seething Troon Collector]

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.

Reddit...41% this has to be a joke right?

This devaluation, part of a broader trend that has hit a variety of growth stage startups across the globe in the past year, raises uncertainties about whether Reddit will maintain its initial intent to reportedly go public at a valuation around $15 billion.

Have people realized that a social media platform with a stereotypical userbase thinking that full throttle Marxism would solve all of the worlds problems are fucking useless...ah who am I kidding, they'll spout how much they hate capitalism while buying funkopops and dick removal surgery by the millions.

 

[Chen Stirner]

>that title
The jokes write themselves.

 

[Dammit Mandrake!]

>that title
The jokes write themselves.

God is real. And He uses Voat.

 

[Sniperwoof]

41% lmao. Reddit did not kill itself. (It did)

 

[pisswomble]

I can only assume this investment group read the antiwork part of reddit and realised that the average user of the website was an unemployable moron.

How is it even valued that much though? The website is basically trannies going on mental power trips with a side dish of grooming, people moaning that their boss told them to do something and onlyfans girls trying to boost their content.

It also has far more extreme content on there than we have ever had, some of the porn stuff is really bad.

Haven't they also bullied people to death as well, properly, not some tenuous link to something like this place gets?

 

[Some Dumb Faggot]

Reddit is gre-ACK!

 

[WonderWino]

cut Reddit valuation by 41%​

Reddit tranny power mods on suicide wat-

oh, right

 

[Gentlebastard]

>reddit being worth anything more than the current market value of whatever material assets it has

lol. lmao, even.

 

[Otterly]

How is it even valued that much though?

>reddit being worth anything more than the current market value of whatever material assets it has

lol. lmao, even.

But it was valuable. Not in any real tangible physical asset type of way but as a social engineering asset. Such sites, along with places like twitter etc are one of the key tools for social control.
-get everyone used to putting every thought online
-create list of acceptable opinions
- don’t agree? Your life is ruined
-use social site to amplify the stories of lives being ruined
-use Mods to prune Wrongthink from all subs - result is classic propaganda in that everyone thinks they’re alone and no one else shares their opinions and that their opinions are wrong. They must be wrong becasue everyone is mobbing me for having them and the law now says it’s wrong and that guy in that story got arrested…
These sites are key to disseminate the ‘accepted’ opinions and reinforce their acceptance by the population. Reddit was hugely valuable for this
If yoi accept the above and also the fa t that it seems Gislaine maxwell was one of the top mods it gets even darker.
Reddit and twitter and a lot of other sites are as much social engineering tools as they are advertising platforms (the two are not even that different really.)
The really interesting question is why has the value dropped so much now?

 

[tehpope]

Until proven otherwise, I just assume all these stock valuation games are a way for rich people to trade shares of companies to groups that want to use them to shape public opinion. Oops, fire sale on Reddit, some political group buys up 20% and installs a director and suddenly the place is astro turfed to hell and back.

Jokes on you. Reddit has been astroturfed by ActBlue since 2016.

 

[Super Hans v2]

The really interesting question is why has the value dropped so much now?

reddit's always had a bot problem, much worse than even twitter, and now that it has been revealed in the last week that the admins have been bullshitting engagement with foreign language subs a lot worse news about them is probably due to come out soon.

 

[Harbinger of Kali Yuga]

Based on what I'm hearing I think Reddit is going to remove all the NSFW stuff and then spin it off into either a pay for service or a sister/affiliated website. Just speculation but think back to me if I end up being correct and can't find this post to gloat about it.

I have a lot to say about reddit but don't want to potentially dox myself. I will say that I have seen things behind the scenes that 1) gave me an idea of how the FBI was involved with social media before the Twitter files, and 2) the reddit admins are deeply political people playing deeply political games.

Reddit's admins have a lot of personal leeway to ban whomever they want, and you will often find people complaining they got site banned for questioning or insulting a moderator. The reason is always "harassment" but the real reason is because the admin is on an alt account on that sub or one of their friends are and just messaged an admin to have you banned as a favor!

in 2012 reddit changed their algorithm and stuff to ensure conservative content would never hit the front page again. There's speculation they use vote weighing which is why the upvote/downvotes things nolonger show true values like they used to. The excuse was vote fuzzing for spammers, but since when did reddit care about spammers? They are incentivized to get people thinking there are more people on their platform than actually is.

It's funny that people will think we say reddit is modded by trannies and think that's an insult, when there's a huge truth to it. Trannies hijacked reddit early on with moderator position trading and stuff since trannies are a close knit bunch that all have sex with each other and send each other pics and shit. It's so gross.

 

[tehpope]

Based on what I'm hearing I think Reddit is going to remove all the NSFW stuff and then spin it off into either a pay for service or a sister/affiliated website. Just speculation but think back to me if I end up being correct and can't find this post to gloat about it.

Based on what happened with Imgur and Tumblr in the past, its probably just gonna be gone and the community will be left to pick up the pieces off site.

 

[Gentlebastard]

But it was valuable. Not in any real tangible physical asset type of way but as a social engineering asset. Such sites, along with places like twitter etc are one of the key tools for social control.
-get everyone used to putting every thought online
-create list of acceptable opinions
- don’t agree? Your life is ruined
-use social site to amplify the stories of lives being ruined
-use Mods to prune Wrongthink from all subs - result is classic propaganda in that everyone thinks they’re alone and no one else shares their opinions and that their opinions are wrong. They must be wrong becasue everyone is mobbing me for having them and the law now says it’s wrong and that guy in that story got arrested…
These sites are key to disseminate the ‘accepted’ opinions and reinforce their acceptance by the population. Reddit was hugely valuable for this
If yoi accept the above and also the fa t that it seems Gislaine maxwell was one of the top mods it gets even darker.
Reddit and twitter and a lot of other sites are as much social engineering tools as they are advertising platforms (the two are not even that different really.)
The really interesting question is why has the value dropped so much now?

I was merely making a joke about reddit being worthless but yes, you're right.

As for the question, probably what Super Hans said. Elon's bot purge on Twitter probably opened the eyes of a lot of people, and now investors are looking closer at the reports and questioning things. The fact that it became such an effective echo chamber might also be one of the reasons of its devaluation; a growing number of people is becoming aware that it's blatantly politically biased and filled to the brim with tranny mods that'll ban your for wrongthink, so it has hit diminishing returns as a propaganda machine. There's less heretics to convert, outsiders are beginning to avoid it, and whoever's using it for propaganda is merely preaching to the choir.

 

[Harbinger of Kali Yuga]

Based on what happened with Imgur and Tumblr in the past, its probably just gonna be gone and the community will be left to pick up the pieces off site.

No, sex stuff is huge on reddit, it's probably more profitable than anything else on reddit. I've heard they've improved some NSFW stuff on the backend, but are starting to forbid third party apps from showing NSFW stuff apparently... the reason is related to reddit's API no longer being free. It's really looking like some sort of subscription service is coming. It's literally porn but the users provide the content. All reddit has to do is stick their beak in and they can make good money off of that. If they can get people to pay.

 

[Anonitolia]

Best title I've ever read on this board
the only thing that'd make it funnier is if troons complained about this being transphobia in the comments section and that got mentioned in the article in an edit

Based on what I'm hearing I think Reddit is going to remove all the NSFW stuff and then spin it off into either a pay for service or a sister/affiliated website.

So just tumblr 2.0? How many times is this going to have to happen before the entire internet has been run through this retarded cycle of events?

 

[HackerX]

The really interesting question is why has the value dropped so much now?

I think it's a admission that reddit doesn't have the capability to do the things you mentioned.

Reddit's credibility as a cultural phenomena is completely manufactured and is a "top tech platform" with nothing organic about it. Everyone treats Reddit like a joke and not to be taken seriously because of that. God bless them, they tried to turn the site into a cultural Internet Mecca, but that ship sailed 10+ years ago.

Bottom Line: Reddit doesn't get the job done. Financial resources aren't as abundant to dump money into a failed project that doesn't get the job done with no path forward.