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Selling a minority stake to outside investors is a good way to capitalize the company and give it the resources it needs to grow. Reddit has been notoriously resource-starved. A few hundred million dollars in a partial equity sale fixes that without draining Conde Nast.



The question is, does growing a loss making company make sense? Or should you solve the monetization issue first.

Reddit doesn't need more money, it needs to be brave, slap up some real advertising, and start generating real revenue.

A website that does 100m pageviews, but makes $10m/yr profit is better than one that does 500m pageviews but makes no profit.


Their ad system has great potential, but right now it's under-developed...




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