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THE LONG CON: How Reddit's founders took their company back #reddit #tech #startups #stockmarket

March 05, 202401:00
00:00:00
this was a post by yesan who is a former
00:00:02
CEO of Reddit that was published back in
00:00:04
I think 2015 he kind of lays out what I
00:00:06
think happened Reddit was sold for only
00:00:08
about $10 million a year after it
00:00:10
launched so like really really small and
00:00:12
I think that it kept growing and the
00:00:14
founders realized maybe that made a
00:00:16
mistake so they started scheming on how
00:00:18
to get Connie Nas to spin it back out so
00:00:20
Yan lays out the steps they went through
00:00:22
they recruited a CEO then they had that
00:00:25
CEO demand options specifically in
00:00:28
Reddit from Ki Nast which meant that
00:00:30
Connie Nas had to create a separate cap
00:00:32
table for it and then once they had a
00:00:33
separate cap table then they could sort
00:00:35
of pressure to have like an outside
00:00:37
investor bought in for the expertise
00:00:39
that just happened to be Sam Alman
00:00:40
eventually step by step they worked it
00:00:43
to the point where they got Connie n to
00:00:44
spin off the company and I guess this
00:00:46
plan worked it should be said that the
00:00:48
largest shareholder in Reddit according
00:00:50
to the S1 is Kias parent company it was
00:00:53
smart for conas to do the spin out and
00:00:55
give up 70% to have 30% of what's going
00:00:58
to be a multi-billion dollar IPO

Podspun Insights

In this episode, the intricate tale of Reddit's early days unfolds, revealing the strategic maneuvers that transformed it from a $10 million acquisition to a multi-billion dollar powerhouse. The narrative centers around the former CEO of Reddit, Yesan, who outlines the clever steps taken by the founders to reclaim their company from the clutches of Conde Nast. With a mix of ambition and savvy negotiation, they orchestrated a plan that involved recruiting a new CEO, demanding options, and ultimately convincing Conde Nast to spin off Reddit. This episode dives deep into the behind-the-scenes drama of corporate strategy, showcasing the lengths to which these founders went to secure their vision. The stakes were high, and the journey was fraught with tension, making it a captivating listen for anyone interested in the evolution of tech giants.

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Episode Highlights

  • Reddit's Humble Beginnings
    Reddit was sold for only $10 million a year after launching, a surprising low.
    “Reddit was sold for only about $10 million a year after it launched.”
    @ 00m 08s
    March 05, 2024
  • The Spin-Off Strategy
    Conde Nast's decision to spin off Reddit led to a multi-billion dollar IPO.
    “Smart for Conde Nast to do the spin-out and give up 70% for 30%.”
    @ 00m 53s
    March 05, 2024

Episode Quotes

Key Moments

  • Reddit's Sale00:06
  • Growth Realization00:12
  • CEO Recruitment00:22
  • Investor Pressure00:37
  • Successful Spin-Out00:46