He’s rich not because of his salary (what Reddit pays him). He’s rich because of his equity/ownership in Reddit. But he can only monetize that if there are buyers.
For years this wasn’t a problem because private buyers and banks were happy to buy his shares or lend against them as collateral. However that market has been drying up over the past 18 months.
So he desperately needs to get to an IPO so he, and his Board of Directors and other stockholders, can dump their shares on an unsuspecting retail public market that doesn’t realize that the “profitability” was only achieved by destroying the user base, and that what they’ve actually bought is a ticking time bomb.
The problem is that if the IPO bombs, it’s the public investors that will lose money, as fuck u/spez and other shareholders will have dumped their steaming pile of shit shares onto the market from the start to reduce their shareholding and cash in.
It would be the Institucional investors that have the opportunity to buy before the share is open in the market. After that is fair game to anyone stupid enough to buy it.
Yes. While he loves to talk about how little reddit makes, he doesn’t mention how much reddit pays him for that.
He’s rich not because of his salary (what Reddit pays him). He’s rich because of his equity/ownership in Reddit. But he can only monetize that if there are buyers.
For years this wasn’t a problem because private buyers and banks were happy to buy his shares or lend against them as collateral. However that market has been drying up over the past 18 months.
So he desperately needs to get to an IPO so he, and his Board of Directors and other stockholders, can dump their shares on an unsuspecting retail public market that doesn’t realize that the “profitability” was only achieved by destroying the user base, and that what they’ve actually bought is a ticking time bomb.
I really hope the IPO bombs just to spite all the people, including Spez, that drove Reddit into the ground.
The problem is that if the IPO bombs, it’s the public investors that will lose money, as fuck u/spez and other shareholders will have dumped their steaming pile of shit shares onto the market from the start to reduce their shareholding and cash in.
It would be the Institucional investors that have the opportunity to buy before the share is open in the market. After that is fair game to anyone stupid enough to buy it.
deleted by creator
Short Reddit on IPO. Give him a good farewell.