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