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Reddit has never turned a profit in nearly 20 years, but filed to go public anyway (www.cnn.com)

submitted 8 months ago by L4s@lemmy.world to c/technology@lemmy.world

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Reddit has never turned a profit in nearly 20 years, but filed to go public anyway::Reddit, the message board site known for its chronically online userbase and for originating much internet discourse, filed for its long-anticipated initial public offering on Thursday.

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[–] kylian0087@lemmy.world 7 points 8 months ago (2 children)

Hoe does this work. If a company has not made a profit in 20 years. How is it not bankrupt?

[–] wurosh@lemmy.ml 17 points 8 months ago* (last edited 8 months ago) (1 children)

You keep telling the next investor it'll be profitable soon. I believe the guy that came up with this scheme first went to prison or something, but afterwards we all collectively decided we were cool with it.

[–] whoscheckingin@lemmy.ml 8 points 8 months ago

That's why they need to go public in the first place. Investors are like it's right now or you're shutting down, no more free money for you.

[–] butterflyattack@lemmy.world 3 points 8 months ago

They've had investors who were willing to pay into a loss-making company. Could be that they sold investors on the idea that it will be profitable at some point in the future but it needs to be funded while it grows. Could also be that the value they see in it is not just financial - the ability to influence opinion, harvest data, stuff like that.