Reddit Said To Be Raising Money At a $400M Evaluation
Social bookmarking powerhouse Reddit is rumored to be raising money at a valuation of at least $400 million. That’s a huge jump from its estimates in 2011 at $200 million when it spun off from Conde Nast and was considering raising funds on its own (an idea it scrapped after analysis of its stand-alone financials proved it was in good shape).
Reddit now has a new board and a new CEO, Yishan Wong, formerly of Facebook. When he was appointed, Wong said the company would be re-evaluating its capital in order to “manage its own finances and operations”. This was said to be a first step towards offering equity compensation to employees, which would give Reddit the ability to become more competitive in the hiring marketplace.
Rumors in 2011 were that Reddit would offer ownership portions in return for investment capital and if that holds true now, the new valuation may be in light of the fact that the company could be worth a lot if outside (private) investors were allowed in. The site has seen a lot of publicity recently with things like President Obama’s “Ask Me Anything” event and income from advertising and other sources is up.
The site sees over 3 billion page views a month (nearing 4 billion during the heat of the American election season last year) and has doubled its year-on-year unique visitor count to over 46 million per month.
So, readers, what do you think? Is Reddit really worth $400M and if so, would you invest were you able to?