• @Veedem@lemmy.world
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    2903 months ago

    He sold about 500,000 shares. He owned, apparently, 3.3% of the 17.06 million total shares of the company, meaning he had a little over 562,000 shares. He sold almost all of his shares. That doesn’t exactly exude confidence in future growth, IMO.

    • @tal@lemmy.today
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      3 months ago

      On the other hand, he already cashed out once and was wrong, so…

      https://en.wikipedia.org/wiki/Steve_Huffman

      The site’s audience grew rapidly in its first few months, and by August 2005, Huffman noticed their habitual user-base had grown so large that he no longer needed to fill the front page with content himself.[11][14][15] Huffman and Ohanian sold Reddit to Condé Nast on October 31, 2006, for a reported $10 million to $20 million.[3][16] Huffman remained with Reddit until 2009, when he left his role as acting CEO.[17]

      Huffman spent several months backpacking in Costa Rica[18] before co-creating the travel website Hipmunk with Adam Goldstein, an author and software developer, in 2010. Funded by Y Combinator,[19][20] Hipmunk launched in August 2010[21] with Huffman serving as CTO.[22] In 2011, Inc. named Huffman to its 30 under 30 list.[22]

      In 2014, Huffman said that his decision to sell Reddit had been a mistake, and that the site’s growth had exceeded his expectations.[23] On July 10, 2015, Reddit hired Huffman as CEO following the resignation of Ellen Pao[24] and during a particularly difficult time for the company.[25] Upon rejoining the company, Huffman’s top goals included launching Reddit’s iOS and Android apps, fixing Reddit’s mobile website, and creating A/B testing infrastructure.[3]

      Since returning to Reddit, Huffman instituted a number of technological changes including an updated mobile site and stronger infrastructure, as well as new content guidelines.

      I don’t think that he’s had a whole lot of faith in Reddit as a business since early-on.

      • Flying Squid
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        683 months ago

        Huffman’s top goals included launching Reddit’s iOS and Android apps

        Mission accomplished! Those undeniably shitty apps definitely were launched.

        • @tal@lemmy.today
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          193 months ago

          I’ve never used them, but IIRC they acquired some third-party client and then just modified them. “Blue Alien” or something like that?

          googles

          “Alien Blue”, at least for the official iOS app.

          https://en.wikipedia.org/wiki/Alien_Blue

          I dunno what the history of the Android app is.

          That being said, they’re responsible for what they acquire, just saying that a lot of that might not be developed in-house.

          • @poppy@lemm.ee
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            243 months ago

            They acquired Alien Blue, but what they put out under “Reddit” was not Alien Blue in the least bit. They basically bought it to kill it. I had Alien Blue. :(

          • Flying Squid
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            143 months ago

            Hey, acquiring another app and launching it as your own app is still launching it! What would they have done without spez?

              • quicklime
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                73 months ago

                My favorite way to visualize the meaning of “asshat”: the person is such a sad waste of human life that their entire upper body is effectively just a hat for their posterior.

        • @tal@lemmy.today
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          83 months ago

          Well, you wouldn’t expect it to in the growth phase.

          A lot of consumer-facing Internet companies have a large portion of their costs be fixed costs. That is, a programmer or QA guy costs the same amount whether you have ten users or ten million users. But your revenue is linear in your userbase size. So you really don’t want to be a small company, if you fit that profile.

          The idea is to burn money and grow rapidly to the point where your fixed costs are relatively small. It makes no sense to try to generate profit if you lose growth for it.

          That’s especially true for social media companies, because for them, network effect is a major factor – the value of the network is something like the square of the number of users.

          So you really want to be big, not small.

          So the solution is to grow quickly, lose money during that period, then adjust and monetize the userbase when you can’t afford to burn money growing any more.

          That transition to a profitable state after a money-losing growth state usually means that a company is gonna do something unpopular (since they’re optimizing for something other than appeal) and what Corey Doctorow was complaining about as “enshittification”.

          The fact that Reddit lost money during the growth phase doesn’t mean that it was a failure – that would have been intended, part of the business model.

          Now, if it’s losing money once the growth phase is done, that could be another story.

      • Null User Object
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        3 months ago

        According to the second link, he sold nearly all of his class A shares, but none of his class B shares. His total share of the company went from 3.2% to 2.6%, which, is still not insignificant.

        • @laverabe@lemmy.world
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          3 months ago

          yeah but your *OP’s statement ‘he sold almost all of his shares’ isn’t really accurate as he really only sold 19% of his shares

          • @nyctre@lemmy.world
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            3 months ago

            19% is still a lot higher than the “only 40mil out of a 16 bil stock” that I’ve seen mentioned and upvoted elsewhere in the thread. But yeah, not that big of a deal, I imagine. I was expecting him to sell over 30%

    • @AbidanYre@lemmy.world
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      133 months ago

      I thought they paid him like $200M last year? How does that work out with only half a million shares?

      • @Ranvier
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        3 months ago

        It doesn’t, he had like 4.6 million shares before the ipo. The 500,000 number sold is just his class A shares. He’ll still have 4.1 million shares of class b stock after this it looks like. The class b stock has ten votes compared to one vote for class a stock for any shareholder votes I believe. So selling only his class a shares won’t change the percent voting control of the company he has by much. The person you’re replying to is confused about how many total shares he has. I don’t think the class b shares are being openly traded though, I think the ipo is just offering class a shares, which is what’s causing the confusion here. He sold almost all of his class a shares, but still has plenty of class b.

        https://www.sec.gov/Archives/edgar/data/1713445/000162828024011448/reddit-sx1a2.htm#i1b9a579e78a34dfa99f7f26daeec195b_100

          • @Ranvier
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            53 months ago

            Yeah, I mean ipo’s in general are definitely a rich get richer kind of thing that screw over retail traders, but I don’t think there’s anything particularly unusual about this one.

    • @ripcord@lemmy.world
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      3 months ago

      That’s weird, I thought the majority of the $150m or so he got last year was in stock. And this says he barely cleared 1/10th of that with this sale.

      Edit: nevermind, explained in other comments

  • Ghostalmedia
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    1713 months ago

    Question: why was Apollo killed?

    Answer: Spez wanted $16 million dollars

      • Ghostalmedia
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        123 months ago

        Absolutely. Although, of the 3rd party developers, Christian was probably the biggest thorn in Spez’s ass. Homie’s Apollo developer update posts were legendary and were covered by international press.

        • @spiderman@ani.social
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          3 months ago

          yeah he was the one who talked with reddit regarding that issue. idk about the thorn thing though. at the end reddit still runs even after multiple subreddits shutdown. hope reddit’s stocks crash.

          • Ghostalmedia
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            23 months ago

            The thing about a thorn is that it hurts, and maybe scars, but it doesn’t kill.

            • @spiderman@ani.social
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              13 months ago

              it might have hurt reddit’s userbase a little but definitely not a scar. he has already sold most of shares, so he will be sailing that ship until he can loot all he could and then jump to another ship when it starts to sink.

    • @tal@lemmy.today
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      -243 months ago

      So, at some point, Reddit was going to have to be generating a return. Spez or no spez.

      I don’t particularly like the route they took – killing the third-party clients was annoying and I think that there were ways to be a profitable super-forum site and still have third-party clients. But it was gonna be something, and whatever they did – more ads, selling data on users, only providing some functionality to paid users – was gonna be unpopular.

      • @Sylvartas@lemmy.world
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        703 months ago

        I would have been ok with reasonable prices for API calls. Bandwidth has a cost after all. But they so obviously set out to drive the third party apps out of business so they could sell ads in the official app/website it just disgusted me.

        Also that new mobile site is so shitty, I refuse to believe it’s not on purpose.

        • @RatBin@lemmy.world
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          113 months ago

          What they didn’t see in doing so was that the core content of the site was curated mostly by people who used either old reddit or third party apps. Modding would be unnecessarily annoying without them. The content is, in fact, way worse than it used be, more importantly bots are in the open and with no counter. You can track the amount if reposts. As for mods they can be as toxic as ever, posting on reddit is hard unless you follow small subs or generic ones that let you post whatever. The site itself is the opposite of user friendly: they wanted to be an alternative to all other social media ever…but instagram, tiktok, youtube, even that deranged thing known as x, let you post peacefully amd without too many restrictions. Reddit…forget about it.

        • @lagomorphlecture@lemm.ee
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          103 months ago

          I don’t get why they had to drive out 3rd party apps for that? They try to make the ads look like user content so it seems like they could have fed it into the 3rd party apps. It must have something to do with the exact placement of t