Fidelity deepens valuation cut for Reddit and Discord
Fidelity has further slashed the estimated worth of its holdings in Reddit and Discord as well as SaaS startup Gupshup.
As a reminder, there's a megathread about all Reddit-related news here - please direct all discussion about Reddit there. Thanks!
Reddit’s been on a death spiral for over a year. The API changes are a Hail Mary to try and generate money. This valuation is bad.
It very much isn't a hail Mary to generate money, they'd have bent over backwards if they'd wanted to keep big players like Apollo and RIF on board, if it had been a hail Mary. 20 million bucks a year is nothing to be sneezed at.
The fact that they left Apollo out to dry shows that it never was about making more revenue, but rather to stamp out competition for their own app. As soon as it has accessibility parity with other apps, it'll turn off API access for unofficial reddit apps alltogether.
