Reddit Migration

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Fidelity has cut Reddit valuation to $5.5B from $10B (techcrunch.com)

submitted 1 year ago* (last edited 1 year ago) by Girlparts@kbin.social to c/RedditMigration@kbin.social

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[–] JohnEdwa@kbin.social 4 points 1 year ago (1 children)

why sell the company instead of enshittifying your platform yourself?

Because it's a lot easier to find someone who thinks they can do it than it is to actually successfully do it yourself - as we are currently seeing with how wonderfully incompetent Spez is with Reddit.
When Yahoo bought Tumblr for $1.1 billion in 2013 - only to sell it for $3 million in 2019 - was Tumblr bringing in millions and millions of profit? No. But Yahoo thought that they would be able to make it.
Elon Musk paid $44 billion for Twitter, it hasn't turned any profit either (and never will enough for him to get his moneys worth, but that's just because Musk is an idiot).

But yeah, quite often it does feel like a scam. Or kinda like... gambling? You hope someone will pay a lot for your company, while they hope they can make it turn wildly profitable, both may or may not come true.

[–] Sordid@kbin.social 2 points 1 year ago

it's a lot easier to find someone who thinks they can do it than it is to actually successfully do it yourself

That's pretty much what I said, though. That's the core of the scam. You sell something you know to be worthless to someone too ignorant to understand that. Maybe I'm just extremely ignorant and naive in matters of business, but selling a fake company like that seems no different than selling pyrite to someone who can't tell it apart from gold.