The Reddit IPO is one of the biggest swindles in corporate history, where millions of unpaid contributors made billions of posts so that CEO Steve Huffman could make $193 million in 2023while laying off 90 people and effectively pushing third party apps off of the platform by charging exorbitant rates for API access, which in turn prompted several prolonged “strikes” by users, with some of the most popular subreddits going silent for a short period of time. Reddit, in turn, effectively “couped” these subreddits, replacing their longstanding moderators with ones of its own choosing — people who would happily toe the party line and reopen them to the public.
None of the people that spent hours of their lives lovingly contributing to Subreddits, or performing the vital-but-thankless role of moderation, will make a profit off of Reddit’s public listing, but Sam Altman will make hundreds of millions of dollars for his $50 million investment from 2014. Reddit also announced that it had cut a $60 million deal to allow Google to train its models on Reddit’s posts, once again offering users nothing in return for their hard work.
Huffman’s letter to investors waxes poetic about Redditors’ “deep sense of ownership over the communities they create,” and justifies taking the company public by claiming that he wants “this sense of ownership to be reflected in real ownership” as he offers them a chance to buy non-voting stock in a company that they helped enrich. Huffman ends his letter by saying that Reddit is “one of the internet’s largest corpuses of authentic and constantly updated human-generated experience” before referring to it as the company’s “data advantage and intellectual property,” describing Redditors’ posts as “data [that] constantly grows and regenerates as users converse.”