this post was submitted on 28 Feb 2024
135 points (93.5% liked)

Reddit

13633 readers
1 users here now

founded 5 years ago
MODERATORS
norz@lemmy.ml
135
Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 9 months ago* (last edited 9 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
71 comments fedilink hide all child comments
 

Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" โ€” that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

Internet Archive capture

you are viewing a single comment's thread
view the rest of the comments
[โ€“] Anticorp@lemmy.world 8 points 8 months ago

That's an enormous stock package. Stock carries real value, and when the stock IPOs he could have considerably more value than the current estimate. Even huge companies with billions in profits don't generally give their CEO such a large compensation package for a single year. The decision to award that to him certainly raises questions about management's competence. Well, it raises additional questions, since I don't think anyone doesn't already have questions about their competence.