Now, Reddit — which is not yet profitable — says it seeks to grow its business through advertising, more e-commerce offerings and by licensing its data to other companies to train their artificial intelligence models.
Shame I left last year. Look at all the great innovation they’ll be doing
So you’re telling me the model cannot consistently run at a profit, even through it relies on a massive unpaid labour force.
https://www.reddit.com/r/technology/comments/1axll4s/reddit_files_to_go_public_reveals_that_it_paid/
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Spez got paid, according to that, $193,000,000 last year as CEO.
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reddit “never turned a profit”.
I can’t imagine the corruption/anti-integrity required to reconcile those 2 facts.
How come he isn’t in jail, for fraud??
The article in the reddit post you shared is misleading. According to the S1 filed with the SEC, spez’s current base pay is $450,000; in 2023 he got roughly $792,000 in performance-based bonuses. The rest of that 193 million is options.
And with any luck those options will be worth fuck all after the IPO flops
How did he get performance based bonuses when his company isn’t profitable?
Apparently that wasn’t one of his MBOs, so we can infer the board is a bunch of dumbasses.
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Enshitification round two, coming to you, Reddit users.
How can something exist if they haven’t made money in 20 years?
How.much debt does the company have that shareholders will be buying into.
Because they have. A ton - they paid Spez almost $200 million last year. But when you invest, spend, or pay out all of the money you get, on your tax sheet it says you didn’t make any profit, because you don’t have any excess money.
They didn’t make any profit, meaning they did not make more money than it costs. It’s not like they wouldn’t make money (the advertisements in example), but its not enough to make a profit out of the business. But given the millions the CEO gets (if its true), then no wonder they can’t make a profit, if CEO eats it all.
Let them. If reddit dies and people move to federated platforms it’ll be for the better. Big if though…
Twitter has taught me that nowadays people are too adaptable, 90% of people will stick with Reddit no matter what they do.
The blackout was useless because most subreddits didn’t even provide an alternative on Lemmy or elsewhere.
How do you short an IPO?
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