I think what we learned with the Silicon Valley Bank disaster is that VCs are absolute lemmings that blindly follow each other in a wild panic. Slashing your valuations by almost 50% surely will lead to the other investors also following. Which most likely will lead to further enshittification for Discord and Reddit as well. Very curious when thats going to start for Discord.
Yeah, that’s the cycle, that’s the capitalist mechanism underpinning the enshittification cycle. Without it enshittification can’t happen because companies aren’t trying to maximize their valuation for shareholders
Reddit, which is currently grappling a revolt from moderators of some popular subreddits over API cost changes, was valued at $10 billion when the social media giant attracted funds in August 2021. Discord raised funding in September 2021 at a valuation of $15 billion.
Uh is this a typo? Billion???
Yep. The value of social media platforms is not in the software, it’s in the users and the content they create. This is why Twitter went for like $45 billion even though a Twitter clone is a common “programming 10 project.
It makes a lot of sense when you think about it.
Twitter was valued at 44 Billion, prior to getting Elon'd. Reddit was a similarly gargantuan site (Arguably, the Big Four sites were Twitter, Facebook, Youtube and Reddit), so even if its' users were famously worth the least of any users on major media sites, it being worth something in the lower billions checks out.
Good.
Hmm, the article says the valuation is for May 31st. It would be hilarious if we could see the direct effects of the blackout through a decrease in its valuation, but I don't think that's what we're seeing here
I’m planning on loading up on puts if they are available during the IPO.
Just as a general warning to anyone who might casually think this is a good idea…
Do not trade options if you do not know what they hell you are doing. I swear some people just want a one way ticket to the poorhouse. If you want to trade options get this book first and actually read it: Options as a Strategic Investment.
Greedy little pigboy is Speedrunning the destruction of a platform
The financial giant also readjusted the value of its holding in Twitter to $6.86 million, up from $6.55 million from a month prior, but still down 65% since the original investment.
Hmm? Even if it's still a big drop from before what do they see in Twitter? Anyway, will definitely continue to go down with Meta looking at it like a hungry predator.
As if Musk would sell it a loss. I don't think his fragile ego would let him to take so public L.
The us gov is more likely to nationalize Twitter than it is to bail it out. American politicians generally don’t care about “soft power” because they don’t care about foreign policy beyond war (most of the time, there’s a few exceptions)
Is that a challenge? - spez
Did discord get dragged into this because a lot of reddit communities also have discords? or some other reason?
Let's see what the Lord of Snoo, Spez will react or spin...
thanks for using Leebra!
go to feed...
Can't wait to see Spez try to pass this off as a good thing.
save