THE LONG CON: How Reddit's founders took their company back #reddit #tech #startups #stockmarket
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Episode Description
Full episode: https://www.youtube.com/watch?v=-Am0vMW3fA0
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Brief Summary
Reddit's spin-off from Conde Nast involved strategic moves by founders and CEO Sam Altman.
Key points
- Reddit's Humble Beginnings. Reddit was sold for only $10 million a year after its launch, a surprising low valuation.
- The Spin-Out Strategy. The founders devised a plan to spin Reddit back out from Connie Nas, leading to its growth.
Transcript
this was a post by yesan who is a former CEO of Reddit that was published back in I think 2015 he kind of lays out what I think happened Reddit was sold for only about $10 million a year after it launched so like really really small and I think that it kept growing and the founders realized maybe that made a mistake so they started scheming on how to get Connie Nas to spin it back out so Yan lays out the steps they went through they recruited a CEO then they had that CEO demand options specifically in Reddit from Ki Nast which meant that Connie Nas had to create a separate cap
table for it and then once they had a separate cap table then they could sort of pressure to have like an outside investor bought in for the expertise that just happened to be Sam Alman eventually step by step they worked it to the point where they got Connie n to spin off the company and I guess this plan worked it should be said that the largest shareholder in Reddit according to the S1 is Kias parent company it was smart for conas to do the spin out and give up 70% to have 30% of what's going to be a multi-billion dollar IPO
