this post was submitted on 28 Feb 2024
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Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 2 years ago* (last edited 2 years ago) by spider@lemmy.nz to c/reddit@lemmy.ml
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Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" — that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

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[–] TWeaK@lemm.ee 105 points 2 years ago (4 children)

Shortly after they introduced reddit gold, they made enough money to cover the server costs for decades. A few years later, with continued revenue from this (until they scrapped it last year), all the money was gone.

The reason reddit loses money is because it's poorly managed.

[–] Hyperreality@kbin.social 49 points 2 years ago* (last edited 2 years ago)

You say that like it's incompetence.

They're deliberately lining their pockets with exhorbitant executive pay-outs.

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