Follow Slashdot stories on Twitter

 



Forgot your password?
typodupeerror
×
Businesses

Fidelity Cuts Reddit Valuation By 41% (techcrunch.com) 177

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. From a report: 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.
This discussion has been archived. No new comments can be posted.

Fidelity Cuts Reddit Valuation By 41%

Comments Filter:
  • I wouldn't take it if they paid me.
  • Who is still using Reddit?
  • by sinij ( 911942 ) on Friday June 02, 2023 @07:03AM (#63570019)
    The reddit moderation model shows its limit - enforced consensus and arbitrary enforcement of rules is the inevitable result. This makes Reddit unsuitable for any discussion where dissent from the popular opinion is voiced. Inevitably a clique forms and all dissenting voices are banned. I think /. is the only site that show some resilience to that problem due to its unique moderation system.
    • by Burdell ( 228580 )

      I'd never tried Reddit until recently. The different groups have arbitrarily different moderation and rules (and they expect you to do everything exactly their way, even if not really documented). Some groups are okay, but some feel highly unwelcome to anybody new.

      I tried to post a question in one group, followed all the listed rules about flair and details, and it was automod-rejected because my karma wasn't high enough (unsaid what level is "enough"). The "helpful suggestion" was to comment on other posts

      • by sinij ( 911942 )
        Stackoverflow has a better model. As a new member you can ask questions and veterans are encouraged and allowed to edit/clarify such posts. As you get more established you are given more powers, including down-voting and so on. New members are also not penalized for asking off-topic questions that can get moved or flagged as redundant but established members are penalized for RTFMing responses to these.
        • Stackoverflow has a better model. As a new member you can ask questions and veterans are encouraged and allowed to edit/clarify such posts. As you get more established you are given more powers, including down-voting and so on. New members are also not penalized for asking off-topic questions that can get moved or flagged as redundant but established members are penalized for RTFMing responses to these.

          It’s possible to simplify this issue further. Authoritarianism is the main problem because when you have a supreme dictator (or small group) that can perm ban on a whim, and the site is about as functional as those countries are. It’s a direct result of ordering a social service under the authoritarian structure that is corporate capitalism which stripped citizens of basic rights. What these sites could use is a little democracy and oversight.

    • "I think /. is the only site that show some resilience to that problem due to its unique moderation system."

      In the same way a Model T is basically immune to EMP! /snark

    • by ThePyro ( 645161 )

      What happens in controversial topics is that you might have a 55/45 split on a particular issue, but if there's 10k users throwing votes around then the 45%ers end up at a score of -500 and the thread looks like a one-sided echo chamber. Eventually the 45%ers stop sharing altogether. They might create their own echo chamber in a different subreddit with their own moderators.

      Reddit works fine for discussing gaming, hobbies, and other non-controversial stuff. What kills it is when users abuse the downvote bu

    • by Tablizer ( 95088 )

      I agree. There's too much arbitrary censorship and filtering there. They should learn from Slashdot* and just use moderation levels to "soft hide" but not delete, except in extreme cases (like goatse).

      If someone wants to rant that transgenders will BBQ in Hell for eternity or Fauci's nano-chips turned their teeth into a Chinese radio station, let them. Showing the existence of such hate and craziness is an education in itself.

      * And in turn, Slashdot can borrow their correction features. At least allow a one

  • Fidelity recently indicated Twitter is now worth only 1/3 what is was [usatoday.com] prior to Musk's takeover.

    And it's not going to get any better. Companies, such as Ben & Jerry's [benjerry.com], are no longer advertising on the site due to the massive amount of bots and hate speech.
  • Comment removed (Score:5, Interesting)

    by account_deleted ( 4530225 ) on Friday June 02, 2023 @08:24AM (#63570199)
    Comment removed based on user account deletion
  • Charging for API? (Score:4, Informative)

    by Sloppy ( 14984 ) on Friday June 02, 2023 @09:04AM (#63570343) Homepage Journal

    I don't know if the timing is truly related, but it's quite a coincidence that this comes just a couple days after Reddit's recent announcement.

    It's like they carefully looked at the overall situation and said "Hey, Elon was able to destroy two thirds of Twitter's value. I don't know if we're quite up to his level of incompetence so we might not be able to achieve a full 70% reduction, but what if we killed off the API? Might that be the magic bullet we're looking for, to drive users away? Even if it only reduces our value by half as much, it's an easy change so it's probably worth trying."

    • by timeOday ( 582209 ) on Friday June 02, 2023 @09:25AM (#63570423)
      No, the 41.1% decline is since August of 2021, not just this week. Despite all the responses above, it's mostly just following the industry trend for tech companies over that period of time [cnbc.com] - especially ones (like Reddit) that draw a lot of eyeballs but haven't actually turned it into big money yet. (Although Meta also took a massive drop, despite making tons of money).

      Reddit's turn to monetization will surely make the site worse, but will just as surely increase revenue (at least for some time), which really is the bottom line for the share price.

  • by kopecn ( 1962014 ) on Friday June 02, 2023 @10:19AM (#63570621)
    Reddit then cuts Fidelitys valuation by 40 percent.

You can tune a piano, but you can't tuna fish. You can tune a filesystem, but you can't tuna fish. -- from the tunefs(8) man page

Working...