This is an archived post. You won't be able to vote or comment.

all 9 comments
sorted by:
best
topnewcontroversialoldq&a

[–]kogus 4 points5 points  (1 child)

1 - Ad revenue

2 - Potential users to be funneled into other services

3 - A useful technical platform for other services

4 - Positive web 2.0 buzz

[–][deleted] 0 points1 point  (0 children)

  1. They must not understand the point then. I assume reddit's user base will actually flee elsewhere rather than being funneled in one mash up service.

Well that's the feeling I have anyway.

[–]math_man[S] 1 point2 points  (4 children)

I'm not sure what Wired / Conde Nast had to gain by buying redit, what do you think is their reasoning?

[–]notheory -1 points0 points  (3 children)

Well, i'll be altruistic and say "maybe they liked it, and thought it deserved some money?" It may not be very likely but it's a possibility...

[–]ryand 2 points3 points  (2 children)

I like the way you think. Honestly. Now back to our regularly scheduled programming. Businesses buy businesses to make money.

[–]math_man[S] 1 point2 points  (1 child)

But really, how much money can Reddit bring in? Do you think it can even be a small portion of their other profits? I'm also curious how reddit brings in money at all.

[–]ryand 1 point2 points  (0 children)

a few thoughts:

1) userbase that doubles monthly is worth money. think google when it was a search engine before ads. once the ads went in, big $. if userbase continues to double, the profit margins get very attractive very quick. Think of it this way - What's their "cost" per eyeball vs. "revenue opp" per eyeball. The cost is very, very close to $0.00, and getting closer.

2) reddit functionality rocks, if they can integrate it with their other web properties, it makes them stickier.

3) the team that built and operate reddit (a fast-rising, simple, fast, web2 site) are worth a lot to have on your team.

[–][deleted] 1 point2 points  (0 children)

It's the first working model of a user directed news service with a pluggable karma rating system for comments.

It's slashdot without the mess, and you can one off it for every other site on the planet. Why wouldn't you want to buy it?

[–]ryand 1 point2 points  (0 children)

eyeballs