News on Medial

Why the big winner in the Reddit IPO is ... a magazine publisher

Business Insider · 1y

When Reddit goes public, it will value the company at $6.4 billion, benefiting Advance, the owner of Condé Nast, which will own 26.5% of Reddit. If successful, Advance's stake will be worth $1.7 billion, a significant return on its initial $10 million investment in 2006. This is a remarkable achievement compared to the failures of other big media companies investing in digital properties. Advance's success with Reddit can be attributed to spinning it out as a stand-alone company in 2011, allowing it to thrive independently.