Jeze3D 64bitReddit wants to raise $748M with IPO, sets value at $6.4B
So only three years of Steve Huffman’s salary?
IninewCrowGreat marketing for an IPO … we need enough money to equal three times what our CEO gets
OpenStarsWatch as he burns through it in one:-).
Also, bold of us to assume that he has not already spent it:-P.
It’s in the form of stock options, which won’t be worth any particularly noteworthy amount unless the IPO goes really well.
If it has a dollar valuation, if it’s taxable, it can be liquidated.
Are you talking about writing them off?
Options come with the obligation to pay for the underlying asset, so unless they are valued above the strike price, they are effectively worse than worthless.
Is it just options specifically, or grants, or …?
Would the reported compensation be at the strike price, or the current valuation, or the difference?
Face value is unlikely to be the amount reported - I doubt the options are granted below the last reported market rate. Hence it’s probably relative to the amount of underlying stock the options represent.
You’d have to check the SEC-filings for more accuracy than that.
Not American, but I would assume the Black-Scholes model will be used for valuation.
Options can come with or without the obligation to buy the underlying asset. I’d assume they will never be worth less than worthless.
Less than worthless would be when exercised, not exercising would be worth 0 - unless you paid for the option contract, in which case not exercising would represent a loss.
748 million? I'll be surprised if they get more than 748 thousand.
I’m considering buying a few shares (if I can just a few) just to watch it burn. And so I can be part of history. Or I’ll wait for it crash after the ipo and grab a few as a likely to never profit but might type of play.
If you’re buying, you’re stopping it from burning…
rudyharrelsonClearly you aren't doing it right. Me buying shares is a death knell for companies. I'd be surprised if my broker doesn't give companies a courtesy call when I've bought a few shares to let 'em know the company's about to go under.
At the very least, me buying shares in a company makes certain it will never rise any higher than at that share price, not until right after I’ve sold my shares.
I feel like we could benefit from a support group. There has to be dozens of us.
I made quite a bit of money back in the day on Apple. Bought their shares dirt cheap, and watch them come back from the brink of irrelevance.
… Then they said they were making a phone. “That’s never gonna work”, I said to myself, and sold it all.
At least I made a nice profit, right?
If you watch many IPO, you will see it spike quickly then a large dump after that. I know the last IPO I was part of, we couldn’t sell for several days after the IPO.
Jo MiranI bought Facebook at $18 thanks to the post IPO dump. I waited for the Google post IPO dump but it never came.
Days? When my company went public employees couldn’t sell their stock for several months. And as soon as we could the price tanked, because everyone wanted to cash out.
The selling was understandable, having 80% of your net worth in a single stock is scary, but hundreds of first-time stock owners doing a fire sale didn’t do the stock price any favors.
By the time we could sell. The stock had already dropped. It never really recovered after that
db0Voluntary bagholder or P&D gambler?
I want some, if nothing else as a souvenir of all the time I spent there before the place turned to shit. Too bad nobody makes actual certificates anymore, I would pay extra to get a few shares in certificate form.
No way I am paying that much for it. The true value is probably much closer to $.30 than $30.
Doesn’t get more brainless
VoyajerHow to get downvotes:
-Complain about getting downvoted
-Name call anyone who does not upvote your comment
part of history
What every idiot who lost money on Gamestop said.
I might wheel it after it tanks, but probably not. My tax advisor always lectures me when I make money wheeling.
HausThree fiddy.
MereoReddit is planning six tiers of early access based on each “participant’s contributions to Reddit,” the company said in its updated SEC filing. Those tiers are based on a user’s “karma” score, ostensibly an aggregate total of up/down votes on posts and comments.
The first tier of users will be those “who have meaningfully contributed to Reddit community programs,” though what that means isn’t explained more clearly. After that come tier 2 users, who must hold at least 200,000 karma points or have taken at least 5,000 moderator actions. Tier three includes users and moderators who hold at least 100,000 karma points and have taken 2,500 moderator actions. Tiers 4 and 5 are each half of the previous tier’s total, and tier 6 includes everyone else, with a waitlist available if the total number of shares purchased exceeds the original 1.76 million.
Basically people who karma farm with low effort posts. This will only encourage low quality posts.
NeatoI got offered a while ago and I had 1,500 link and 0.5M comment karma after a decade. I was never a moderator or did anything important. I can’t imagine that was considered meaningfully contributed. At least I hope not.
250k karma was enough to get into the first round of invitations
Link or comment karma?
Comment karma
Midnight WolfI got invited with just a bit over 100k; I considered it, just out of ‘fuck it, why not’ but didn’t follow through. I have like 6 posts of maybe, maybe 300 upvotes combined, the rest is comments; either helpful, amusing, but not really ‘meaningful’. Account since 2013, lurker for a while before that. Though I got out of my shell and shed a ton of social anxiety with those comments, so personal growth woo.
I’m really curious about how it’s going to launch, and the first few months.
The best part is that this whole thing is about having the “opportunity” to purchase reddit stock at its IPO price. This user generated content farm wouldn’t dare give away equity for free to users responsible for the site having any past, present, or future value.
I’m not a finance person, but the only gambling I’d do on this company is hope that Wall Street pumps the price post-IPO so I can short it.
My understanding is that the value of each reddit user is priced roughly at $2. A Facebook user is priced at roughly $40. Their only options to maybe be profitable are more enshittification, more users, or both. Or, you know, not paying hundreds of millions of dollars to the execs of an RSS feed with voting and comments.
I bet wallstreetbets is going to pile into shorts out of the gate because who doesn’t want to stick it to reddit and its WSB lol. Then after a slumpy start some whale is going to blow up all those shorts and pump it like crazy and then everyone will buy panic calls and the early ones in will fade the top and screw over the call buyers on the way back down. Thats my prediction. Not touching this with someone else’s 10 foot pole lol
QuarterSwedeI got the you’re invited to the IPO email from them and said, Fuck you Spez, as I deleted it. God that felt good. I hope they short the ever loving hell out of it.
Someone should crosspost this to [email protected].
A Reddit user is $2 now, but they have terrible ad targeting. Reddit users volunteer troves of info about themselves, so even a modest effort to start tying all those user signals together could be a great boost that number (which really wouldn’t take much). Plus monetizing that base for LLM data and you got a stew going. They’ll of course make do the cash grabby enshitifying stuff too, but their user data is much more underutilized than facebooks at the moment.
As someone who was invited to that first group and told them to go fuck themselves, it’s actually mostly people who have participated in reddit surveys and reddit mod meetups (where mods from a local area get blasted on Huffman’s dime). Almost every mod that I know that went to one of these events got an invite and all of them gave similar answers to me.
Also, 200k karma isn’t a ton. It likely places you in the top 1%, but most people don’t participate anyways. I had over 300k (I think, I’m not checking) and maybe 1k was from a single post. Everything else was from the occasional comment
Wait I could’ve gotten drunk on huffman’s money? I just skipped mod meetups because the company sounded awful
Oh yeah. They brought us in for one and said it was a 2 drink maximum. No one was actually checking, so we were all plastered with the admins
Now why, (me doing a Jack Benny impression): why, ya see - why would I go and buy stock in a company that hated everything I ever posted, and then banned me for saying that progessive thought is a good thing. I ask you.
B/c Reddit has decided that you needed moar Reddit, so that you can haz Reddits while you are also Redditing.
That, or they are counting on someone, somewhere, to be dumb enough to fall for it.
Watch as people absolutely do. :-(
Ahh well in that case, it makes perfect sense. I'll take 4000 shares.
I feel the power surging through me, TOTAL CONTROL OF THE UNIVERSE IS WITHIN MY GRASP!
NO - you would need a power level to be over 9000 for that.
This is half that. So you have only half control of the Universe. Like, you have to submit a request to your boss to use your power to do anything, but then he/she gets to either accept or deny your request. Requests must be submitted in triplicate and accompanied by a notary public cosignee signature. Other terms & conditions apply. Also, Huffman has veto power, and your requests may be lost or ignored at any time - but if YOU ever lose or ignore a reply in turn, then you are banned.
Yet one more reason to say: Viva la revolución!
Hmmm, only half control of the Universe would be only half realizing my ambitions. It would be going at it half-assed - and I wanted to use my WHOLE ass this time!!
Guess I'll have to buy more shares since I must control not just Earth and Neptune and Jupiter, I want Uranus as well. (!).
As long as we are still talking about Reddit, I want you to have Huffman’s anus as well:-). Have you tried sending him a picture of you dressed up as Elon Musk? Maybe you could become friends with Musk first, by sending him a picture of you dressed up as Donald Trump? :-P
Why buy a company that can’t make money and intentionally kills decent revenue streams?
the way they took away awards, even old awards, was so fucking stupid and demeaning to the site as a whole. i don’t see anyone using awards at all anymore
Ex NummisTwelve dollars and a bitten sandwich. That’s my final offer, and already more than generous.
Throwing away a perfectly good bitten sandwich like that? smh
Yeah that’s a waste of a good sandwich tbh
“Website that never posted a profit thinks it’s worth over 6 billion dollars. Yes US dollars.”
More like $599 US dollars. Riiiiidge Racer!
I’d laugh about this but then I remember that someone recently bought Yahoo for $5B
Who’s the moron that bought Yahoo for that much? Anybody using yahoo mail is going to be dead or not need email in 10 years and yahoo answers doesn’t exist anymore.
So what value could that company possibly have?
I don’t know the current trends, but yahoo was a powerhouse in Asia for a very long time. The primary search engine, news, Email provider.