Conde Nast to Sell Share in Social Site? You Reddit Here
It’s been almost 5 years since social news aggregator Reddit was acquired by Conde Nast.
Since then, the publisher has done its best to let Reddit go the way of a
Digg Dodo, but thanks to some fundraising and running a lean team, Reddit has managed to achieve some epic growth–hitting 1 billion pageviews no less!
It appears that Conde Nast is not quite ready to let go of the cash-cow that Reddit could still become and is instead mulling a sale of a stake in the site. According to CNET,
The publisher would continue to own the site, but it’s talking to investors about selling a stake. Sources tell me it is floating a $200 million valuation…The theory: taking Reddit outside of Conde Nast’s corporate structure would make the site that much more valuable, and would give it a better chance to compete for capital, managers, and employees alongside the likes of zippy start-ups like Quora, StackExchange, etc.
What a rosy picture that is! More likely, Conde Nast is not sure whether Reddit will dive or thrive and so is hedging its bet. Sell a small stake and reduce some of the risk, while still having enough skin in the game if the site soars.