this post was submitted on 18 Jun 2023
96 points (100.0% liked)
Moving to: m/AskMbin!
19 readers
1 users here now
### We are moving! **Join us in our new journey as we take a new direction towards the future for this community at mbin, find our new community here and read this post to know more about why we are moving. Thank you and we hope to see you there!**
founded 1 year ago
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
My thing about them wanting ipo is that it makes no sense to me. I don't for a second believe it is a want for the good of the site. An ipo isn't gonna actually make them profit.
If they just wanted to make the company profitable, just do that and stay private.
Sure, they could be running out of burnable funds. That could be why they want the injection. But if there plan was to get profitable then do an ipo, why bother with step 2. Go straight to step 3, profit.
When you buy shares in a company, that money doesn't just disappear until you sell your shares again-- it goes to the company you bought shares in. That was the original idea of the stock market: it was supposed to be a way for companies to basically crowdfund their business ventures by selling shares. The idea was they could use the money they raised by selling stocks to invest in the company so it could become profitable on its own, then they'd reward the stockholders for helping them by giving them a share of the profits.
So in other words, reddit is so desperate to IPO because now that the VC money is running dry, selling shares is their only option left to raise a ton of money fast. They're hoping that will buy them more time to figure out how to become profitable on their own. (Or at least delay that time until Spez can abandon the company with his multi-million dollar golden parachute, leaving some other poor shmuck to deal with the inevitable bankruptcy.)