this post was submitted on 21 Jun 2023
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It is baffling to me the timeline they chose for this. If I were an investor I would see this as complete desperation. What stable company makes these decisions seemingly on a whim?
I completely agree.
I think this must be it. Desperately looking for new sources of revenue to get into profitability quickly - so they can meet their timeline on the IPO and make up for lost value in their recently cut valuation.
It's gaming an algorithm.
Big deals like this aren't made off one person's decision, there's all these metrics that are supposed to show the health of a company. But like anything, if you know the metrics you can just focus on that even if it's the literal worst thing to do. It pumps the metrics.
They're not trying to keep reddit alive forever, they want to juice the metrics so it's worth the absolute most on IPO day. It's all they care about.