They lost 93 million on 2023, and paid the CEO more than double that.
Nope - can’t think of a single thing they could do to make reddit profitable.
They paid him just shy of 400k. The stock and options he was given have nothing to do with reported losses. It’s all monopoly money until IPO, them we’ll see what it’s worth.
Paying yourself 190 million in stock options when the company is running at a loss is pretty much blatantly admitting that the company is severely overvalued. My guess is that it will tank 90% once it goes public. If not more, Reddit produces nothing inherent of value and they are really hostile to their users.
Sounds like a hell of a lot of money for a CEO who kept insisting that he had to kill 3rd party apps because Reddit still isn’t profitable.
“Reddit isn’t profitable because leadership is wildly incompetent, so let’s pay them an exorbitant amount of money instead of using that money to properly fix things or make any genuine improvements to anything.”
-reddit
It really feels like all corporations do this.
Then the failed CEO gets another CEO gig because they’ve got “experience”.
Let’s be real, they did it because they didn’t want people training AI models without paying them. They didn’t give a shit about 3rd party apps.
People that want to train AI models on Reddit content can just scrape the site, or use data from archive sites that archive Reddit content.
I’m convinced there was more to it. Otherwise they’d have worked with the app devs to find a mutually beneficial solution. Instead they just acted like massive, deaf assholes through all the drama, blackout…
Of course, it’s totally possible they’re also insanely stupid, arrogant assholes.
It makes the ridiculous prices they were quoting make sense. Because giving API access is giving a key to all that data, which they can then turn around and covertly sell access to. So they priced it so that they wouldn’t have to sell the data at wholesale value to apps that could turn around and undercut their AI training prices.
It’s the same reason why they were considering blocking Google search because Google (or any search engine) uses a crawler to look at all that data and you can’t allow Google to continue without leaving it open to any other crawler, like say an AI training data crawler.
Same thing with any push to make users log in to view comment threads (and it wouldn’t surprise me if that’s what Musk was thinking of when he was doing/considering the same with Twitter). If only users can access the comment data, then it’s easier to see when a user is reading too much data, or rate limit them. Also the move towards only showing a bit of a comment thread by default.
But that data is the only reason people visit the site and provide more data, so I don’t see this problem ever fully going away for them. The problem they are trying to solve is how to give access to enough data to engage users enough to provide more data while preventing AI trainers from getting that same data for free. If I wanted to, I bet I could write something that would fill a database with comment data and metadata while browsing normally in less than a day and then a bit longer to automate the browsing entirely (depending on what kind of bot detection the site uses). There’s no way for Reddit to stop the manual browsing version and the automated one will be an arms race that will also end in no way for it to be stopped because it emulates a real user to an undetectable level.
Should have picked Harassment. Selecting Spam does nothing.
Spez truly got that little dick energy going on
I take offense to this. I have a little dick. I don’t destroy everything for everyone around me while shitting myself violently. I say he has Caillou energy. Arrogant, narcissistic, hideous, an abject freak, a mistake granted legs and will hopefully suffer from a terminal illness.
Fuck Caillou. Fuck Steve Greedy Pig Boy Spez Huffman
The more I see you post, the more I like you.
“big/little dick energy” is pretty misogynistic, really…
It’s really just body shaming, no?
This doesn’t apply to sayings. If it does, saying someone has a big head for acting proud is also body shaming. That’s dumb.
This doesn’t apply to sayings
i don’t see why you would think that? it definitely applies to sayings.
btw, notice how everyone has a head but not everyone has a dick? the clue for why it’s misogynistic is in there…
notice how men are endlessly shamed and ridiculed for their dick size, and many people have complexes over it and even kill themselves?
the clue as to why it’s harmful and body shaming is right there…
not a lot of people crying over the size of their head…
there’s no support groups for people with big heads…
I think misandric is more apt of a description
This reeks of small tits energy.
Now you get to tell us what you think that word means.
it means (cis) women don’t have dicks, so naturally big dick men are in charge
also men with small dicks are inferior and should feel bad about themselves…or would you like to tell me how it doesn’t mean that?
small pp energy here
He wasn’t paid that amount. He got 341,000 in cash and the rest was in stocks and options (which will only be worth that much if the company performs well financially). This us place is just like Reddit, nobody ever reads the article.
Unable to delete so editing instead. Leaving Lemmy.world due to privacy concerns.
Still not how that works, if he wants cash he has to sell, selling stocks is heavily taxed. Now he can take a loan against the stocks but if they don’t do well then he’s not going to get much for them. It’s a risk and taxes is paid like it or not.
Still a shit system, but that’s a different discussion, but they pay taxes.
Unable to delete so editing instead. Leaving Lemmy.world due to privacy concerns.
If they sell after holding it for more than a year, if they short term sell the stock under a year it’s a normal income tax on said stock.
Unable to delete so editing instead. Leaving Lemmy.world due to privacy concerns.
How do I buy puts on this?
CBOE will create options for it pretty soon after IPO, probably that week or the next. You’ll definitely be able to buy puts on it before you’ll be allowed to short sell it.
