Two IMO on-point excerpts of the article:
The highest-ranked replies are very critical of the post. “What good is our feedback when reddit seems perfectly happy to ignore all of it?” wrote one user. “What’s the point?” Another pointed out that Huffman called mods “landed gentry.” “Show, don’t tell,” wrote another user — to which the admin replied, “Agreed.”
“A beginning of what?” replied one user. “This solves nothing, and just wastes everybody’s time.”
Reddit’s administration is sounding more and more like an abusive SO trying to gaslight you into staying in the relationship. “Baby I’ll listen to you, I swear.”
Reddit likely doesn’t IPO until Q4 or Q1 2024, by then most of the 3rd party drama will be forgotten. IPO is their only choice, there isn’t tons of VC money looking to get spent, and they’ve already burned several rounds of funds to limited effect. I agree it’s not a great time to IPO for Reddit, but they really don’t have a choice.
I also think the drama will have died down, and even of it didn’t, it would have a limited effect on the IPO by itself. Twitter losing about 2/3 of its value isn’t because people think Elon is a jerk. It’s because he’s killing growth and revenue. If a company can’t trade on its profitability, it has to do so on its KPIs. What I’m saying is that if reddit’s growth was negatively affected by the ham fisted decisions, it’s going to pile negatives on top of already existing negatives.
Basically, I think it was a desperate move but also a terrible idea, not unlike Elon forcing $13B in debt on Twitter and then making up for it via the destruction of verification.
I don’t think reddit was positively affected (as of yet) by the decision - otherwise they wouldn’t be doing the outreach stuff. If only 20% of reddit users are creating 80% of the content (a wild ass guess that’s not unreasonable as a starting point), and if those engaged users are more likely to be protesting/leaving, then the aftereffects are going to be showing up over the next two quarters. If spez needed to show a turnaround for the money folks, it needs to be a turnaround and not a “we tried.”
I just think they’re selling into a down market - down for them in particular but also for the industry - and if they IPO under those conditions I don’t think they’ll hold their initial pricing. “Here’s a turd. Do you want to pay a premium for it in case we can polish it?”
It’s absolutely desperate, but they don’t have a choice. The company isn’t profitable, their revenue per user is awful, they are running out of VC money, they hired a ton of people to growth hack their metrics and it appears to have largely failed, they have no plans for effective monetization of the site or how to be profitable at an acceptable level for the amount of investors they have.