Reddit,The Immediate Stages of the Erotic, or Musical Eroticism the social news site, is now valued at $3 billion after raising $300 million in a series D funding round led by China's investment holding giant Tencent, Reuters reported Monday.
It's weird pairing. Reddit is banned in China, and some members of its community -- which is traditionally hard to keep in check -- are protesting the deal.
CNBC reacted to the news by proclaiming Reddit users "the least valuable of any social network," based on the average revenue per user (ARPU) figure, which you get by dividing a social media site's revenue with the number of its monthly active users (MAU).
SEE ALSO: How Reddit is helping horror writers find successIt's an odd take. The news about the new funding doesn't mention revenue, and Reddit declined to comment about it to the outlet, so the figure of $100 million in annual revenue is derived from an 8-month-old report, also by CNBC.
Mashable has reached out to Reddit but the company only confirmed that the funding news is accurate. Reddit had nothing to add regarding its revenue or the ARPU metric mentioned above.
The article also glosses over key differences between Reddit and some of the other sites it's compared to. For example, Reddit encourages anonymous profiles while Facebook does not allow them at all, which makes targeted advertising on Reddit much tougher to do. There's also the possibility that Reddit's owners are unwilling (or perhaps incapable) to monetize their user base further, compared to other sites.
But most importantly, this simple calculation -- revenue divided by MAUs -- is incredibly ill-placed in the context of Reddit. The site's diverse communities are helping talented individuals kick-off careers, saving marriages at the 11th hour, and kickstarting numerous valuable, real-life initiatives.
Sure, Reddit can be toxic as hell. Sometimes, it felt like the site's leaders were dumbfounded as to how engage with the site's communities, which often led to backlash. Sometimes, Reddit struggled to keep some of its users from breaking the law.
But Reddit's diversity and unwillingness to conform to arbitrary rulesets are what make it different. That's what made Reddit thrive when Digg, once an incredibly popular social news site and a sort of precursor to Reddit, started bleeding users after Digg's community massively protested the site's redesign. That's what makes Reddit a great source of information and (often polarized but rarely boring) discussion. In a word, that's what makes Reddit interesting.
Sure, perhaps Reddit will never be able to monetize its user base the way Facebook or Twitter can (it's telling, however, that its high ARPU didn't keep Twitter from bleeding monthly active users lately). But ARPU is not the only -- I'd argue it's not even the most important -- measure of value, and hopefully Reddit's investors are aware of this. To paraphrase Redditor KeavesSharpi's comment on the site: If this is how value is calculated on a social network, perhaps it's better to stay worthless.
Topics Reddit
Trump signs AI education order to train K
Lord of the Flies
Bear Witness
Sincerely, from Some Other Side of the Mountain
How to Squeeze the Most Out of Your iPhone's Battery
Online Christian Martyrs
Ill Liberal Arts
Singing in Dark Times
Sunday's Fat Bear Week match pits two fat favorites against each other
Reviving the State
The 10 Most Anticipated PC Games of 2016
Dangerous Men
Give Peace a Chance
Vegan Nation
Clever backyard water tank looks like a giant raindrop
My Enemies Defeated Me / For Nothing
Sincerely, from Some Other Side of the Mountain
Give Peace a Chance
Trump's DEI keyword crusade hits the country's defense archives
Great Power Competitions
The Nonlogic of Dorrance Dance’s ‘ETM: Double Down’'Quordle' today: See each 'Quordle' answer and hints for September 1Revisited: Alan Watts, ‘This Is It’Just how restrictive is OpenAI's DALLCanva launches suite of free AI products for classroomsFather Daniel Berrigan: Poet, Priest, ProphetLast Chance for our Summer DealLast Chance for our Summer DealFather Daniel Berrigan: Poet, Priest, ProphetWhat is skin cycling? A step“The Poker Game We Play”: A Letter from Christopher IsherwoodT. S. Eliot's 'Four Quartets' as Cage MatchTaylor Swift fans have boosted shopping searches for 'football outfit' by 242 percent9 funniest tweets of the week: 'Bee Movie,' Tyler, the Creator, and haters.Dipping Into the Nieve and Innen Zine Library'Quordle' today: See each 'Quordle' answer and hints for September 5The Book of SedimentsBeauty Marks: On Pre'Quordle' today: See each 'Quordle' answer and hints for August 29The Critics Hate Art So That It May Thrive SXSW 2020: RSVP for Mashable House and Mash Bash Gwyneth Paltrow talks Goop criticism and customer data privacy Today is the first global palindrome day in 909 years. Another one won't happen for 101 years. Here's the 'Back to the Future' Cybertruck mashup you never knew you needed Samsung Galaxy S20 leaks again, this time on Samsung's own website Twitter reveals its employees have equitable pay on #EqualPayDay 'Star Trek: Picard' brought back Hugh in Episode 3. Who is he? Samsung Galaxy Z Flip isn't even out yet and there's already a golden, Joker Twitter exploit let 'bad actors' match phone numbers to accounts Little girl shuts down a salesperson who asks her to choose a different doll Nevada will no longer use app from Iowa caucus meltdown (UPDATE) Elon Musk's latest song is a hit on SoundCloud Australian firefighters get their own Funko Pop to help animals impacted by the bushfires Motorola's foldable Razr leaks in gold, multiplying the bling factor by infinity Iowa caucus results delayed thanks to 'inconsistencies' with voting app Divorced couple still gets their family photo taken every year for their son Barnes and Noble suspends 'diverse editions' collection amid backlash Twitter launches text descriptions for GIFs Katy Perry Googles hot pictures of herself to boost her confidence Lyft will offer free rides for voters during the 2020 primaries
3.4597s , 10194.1640625 kb
Copyright © 2025 Powered by 【The Immediate Stages of the Erotic, or Musical Eroticism】,Openness Information Network