00:00:00
Reddit has filed to go public finally
00:00:02
this will be the first major Tech IPO of
00:00:04
the year and the first social media IPO
00:00:05
since Pinterest in 2019 if you can
00:00:08
believe it the the platform's bankers
00:00:10
are looking for a valuation of at least
00:00:11
$5 billion not too big it has 73 million
00:00:15
daily active users and one of the most
00:00:17
visited websites in the US in an unusual
00:00:19
move Reddit will reportedly offer 75,000
00:00:22
power users the chance to buy shares at
00:00:24
the IPO price I think other companies
00:00:26
have done similar things first off
00:00:28
Reddit has been around since 2005
00:00:30
um this will be a test for IPOs in
00:00:33
general the advert their business is
00:00:35
largely advertising um and uh now they
00:00:39
just there's and the probably the most
00:00:41
controversial thing is this licensing a
00:00:43
data licensing agreement they just
00:00:44
announced a $60 million deal with Google
00:00:46
last week which I think people inside
00:00:48
who use the company are not happy about
00:00:52
um so any thoughts talk me talk to me
00:00:55
about this IPO well first off everyone's
00:00:58
sort of waiting for the market to thaw
00:01:01
the IPO market and it probably is
00:01:03
beginning or the atmospherics are lining
00:01:05
up just because of the acceleration in
00:01:07
the markets the markets are reaching new
00:01:09
highs and Nvidia has totally inspired
00:01:12
kind of the animal spirits appear to be
00:01:14
returning and there's several IPOs lined
00:01:16
up and everyone's waiting for one to
00:01:19
really pop whether it's going to be
00:01:20
Reddit or Shen which is kind of the
00:01:22
biggest now the biggest fast fashion
00:01:24
company in the world I like Reddit a lot
00:01:27
I actually think this IPO could be
00:01:30
a a real winner because I mean the first
00:01:32
thing I did just very basic I type in
00:01:34
most traffic sites in America number one
00:01:37
is Google number two is YouTube number
00:01:40
three Reddit and number my kids use it
00:01:43
and number four is Facebook number five
00:01:46
Amazon number six PornHub number seven
00:01:48
Wikipedia and number eight Yahoo and my
00:01:51
attitude is Yahoo over Twitter it's not
00:01:54
crazy I'm a shareholder in Yahoo
00:01:55
probably but my thesis around Yahoo is
00:01:58
the same as my thesis around Reddit and
00:02:00
is remember those charts I always used
00:02:02
to put out 10 15 years ago saying
00:02:05
newspapers command 7% of people's
00:02:07
attention but they get 18% of the
00:02:09
advertising Revenue whereas the internet
00:02:10
is 30% of people's attention but only 9%
00:02:14
of money and over time the two calibrate
00:02:18
they two they normalize they come in
00:02:20
line with each other and so when you
00:02:22
look at the most traffic sites in the
00:02:24
world they're usually you know one plus
00:02:27
trillion dollar companies and so this
00:02:29
company is going to go out supposedly at
00:02:31
a valuation of 5 billion and it's the
00:02:33
third most traffic site in the United
00:02:35
States enough said it's a bargain they
00:02:37
should be able to they should be able to
00:02:39
figure this out still rely on
00:02:40
Advertising quite a bit like that that
00:02:42
if you look at the numbers it's it's a
00:02:44
really heavy and so they're they're
00:02:46
subject toes of the market I get it I
00:02:49
get it you're right so does Google
00:02:51
that's all this is this is a much
00:02:52
smaller company like I've interviewed at
00:02:54
CEO Sam uh I mean um uh Steve Huffman
00:02:58
quite a bit as I like like him he's he
00:03:00
was really first on figuring out content
00:03:02
moderation they of course had a terrible
00:03:04
back and you know around some really
00:03:06
heinous sites there um on the site um
00:03:10
you know it's always been a little bit
00:03:11
of a Shaggy Dog of a social media they
00:03:13
did a $60 million deal they have a
00:03:16
little bit of that AI spice on their on
00:03:19
their you know on their on their meal
00:03:22
they got a 60 million bucks I think
00:03:23
that's going to go up or they might take
00:03:25
the content
00:03:26
inhouse this is the risk they can't be
00:03:30
Pinterest and snap that have kind of
00:03:32
gone sideways and always end up being
00:03:33
the little engines that could what I was
00:03:35
thinking yeah but if they if they
00:03:36
continue to be one of the most traffic
00:03:38
sites in the world they can put an AI
00:03:39
spin on this at five bill I mean let me
00:03:42
just be transparent I'm going to try and
00:03:43
get stock in this thing I think this
00:03:45
thing I think this could be either Sheen
00:03:48
or Reddit are going to set the IPO
00:03:50
Market on fire I think Sheen is a is a
00:03:52
retailer though of course right but Shen
00:03:54
I mean it's another one we'll talk about
00:03:56
this another day but Sheen is now the
00:03:57
largest fast fashion company in the
00:03:59
world yeah and one of these one or both
00:04:03
of these is going to have a big pop
00:04:05
because the market the IPO Market has
00:04:06
been so thaw that I bet these get priced
00:04:09
fairly
00:04:10
conservatively and there's so much money
00:04:12
on five billion is low is very low
00:04:14
that's nothing and that's the problem is
00:04:16
a lot if it sticks at five billion it's
00:04:17
not going to get a lot of anal coverage
00:04:19
no one really cares about million
00:04:20
companies do make money as I I think the
00:04:22
money I think they're cash dep positive
00:04:23
I believe um what's interesting here's
00:04:25
one that that that 9% of the voting
00:04:28
power at Reddit open a i CEO Sam Alman
00:04:30
there he is pops up he invested um at a
00:04:34
time when they were struggling a little
00:04:35
bit $60 million in shares because they
00:04:37
were going to go IPO and then they
00:04:38
weren't and then they were sort of owned
00:04:39
by K nask and they weren't you know what
00:04:41
I mean they went through a lot this
00:04:43
company has gone through a lot of
00:04:44
iterations yeah um and you know sort of
00:04:46
coming out maybe they should be bought
00:04:48
this people thought about buying them
00:04:50
then there was the controversy over
00:04:51
those terrible the Trump forums and
00:04:54
everything else and then I had an
00:04:56
interview with Steve and he said he was
00:04:58
the first CEO to say to me about content
00:05:00
moderation you know we were very they're
00:05:03
very they were the fir they were you
00:05:04
know the the the Free Speech wing of the
00:05:06
Free Speech party right those gu of of
00:05:09
the people I interviewed but he was also
00:05:11
the first person who said to me some
00:05:13
people are just malignant actors and
00:05:15
we're going to throw them out and nobody
00:05:17
had ever said that and they had no
00:05:19
resources to do it and that was a big
00:05:22
deal when he said that to me I was sort
00:05:23
of like this the company with the least
00:05:26
ability to do anything about it was
00:05:28
articulating something that just made
00:05:30
perfect sense right and this was a
00:05:32
company that was so free speechy you
00:05:34
couldn't I mean they and they got in
00:05:36
trouble for it
00:05:37
very I share tell me about Altman what
00:05:40
do you think about Altman just curious
00:05:42
first his investment gets this thing at
00:05:44
least another billion dollar in
00:05:46
valuation because it's more of that AI
00:05:47
sprinkling it's more that AI pixie
00:05:50
everybody thinks Sam Alman maybe with
00:05:52
the exception of Jensen Hong is the
00:05:54
smartest person in the world and he's an
00:05:56
investor and a shareholder here one of
00:05:58
these companies is going to going to
00:05:59
have a triple digit opening day uh in
00:06:02
the IP Market we're going to be off the
00:06:04
races I like interesting goodness I
00:06:06
think this is a great I like it yeah I
00:06:08
like it a lot and only that Reddit it's
00:06:10
a global brand people know it it is it's
00:06:12
a global brand what how many Global
00:06:14
Brands can you pick up for five billion
00:06:15
bucks right not just that it's a youth
00:06:17
brand too my kids I was surprised they
00:06:19
use two things YouTube quite a bit but
00:06:21
Reddit just as much it's a really and
00:06:24
they don't use it for chitchatting they
00:06:25
use it for videos and consumption which
00:06:27
they don't like they don't like Tik Tok
00:06:29
I know it sounds crazy but they find it
00:06:30
too performative and they love they
00:06:32
think Reddit feels more real um it's an
00:06:35
entertainment vehicle for them so you
00:06:37
know it's a a really interesting hack
00:06:39
that I didn't discover type in your
00:06:42
search and then add the word Reddit and
00:06:44
see what comes up oh really interest
00:06:47
there's a whole thing on why we're so
00:06:48
annoying on Reddit just do you know that
00:06:51
oh really they try they vote about which
00:06:53
one of us is more annoying that that's a
00:06:55
tough one that's not an easy call No but
00:06:59
really that's a photo finish I'm
00:07:02
insufferable but interesting you are the
00:07:04
most annoying I'm sorry to tell you but
00:07:06
oh you already decided is that Reddit I
00:07:08
no I looked at it I'm looking at Reddit
00:07:10
I like I there's there's whole sections
00:07:12
talking about oh good we're back for
00:07:14
those of you wondering we could go 10
00:07:16
minutes without talking about us tell me
00:07:17
about your book Cara no no no but let me
00:07:20
tell you I went there and I it popped
00:07:22
right up it was I was looking have you
00:07:23
heard about our therapy session Jesus
00:07:25
this really is a Scot love that people
00:07:27
love that it is Scot and Care show but
00:07:29
I'm saying it was really interesting it
00:07:31
was it's just endlessly interesting
00:07:33
information but there's a whole section
00:07:35
of whether we're annoying or not that's
00:07:36
well the answer is yes yes but but as
00:07:39
long as we're entertaining that's fine
00:07:41
that's what I said I was like I almost
00:07:43
popped in and went hey girls Reddit
00:07:45
watch out I'm I'm calling it now redit
00:07:48
Reddit first first trade first trade way
00:07:55
up