• Ephera
    link
    fedilink
    English
    710 months ago

    Another blackout during their IPO would certainly send their stock prices off to a good start…

    • happybadger [he/him]
      link
      fedilink
      English
      510 months ago

      That might happen but that’s not where the real pressure point is. Sometime shortly after the IPO, whatever hype exists around it is going to give way to the reality that reddit is an unprofitable company at the end of a tech bubble built on 0% interest rates that aren’t coming back. There is no way for reddit to become profitable without making itself unusable and sanitising the NSFW content that drives a huge amount of its traffic. When the price tanks, they’ve bribed their 75k most loyal users and mods into accepting the IPO with advanced purchase options at what might be the high point of its value. That’s when shit stands to rupture. Reddit will have failed everyone to enrich Steve Huffman and the venture capitalists who invested in their earlier rounds and there’s no way for them to control that tantrum spiral.