Yeah, I think you’re exactly right. My guess would be that as a public company, Reddit looks a lot like Lyft - not a terribly differentiated product, cost structure out of control, poorly performing stock, but still a multi-billion dollar company.

I think I read somewhere that Reddit had taken like $1.7 billion in VC money. Even if its current valuation is way down from what it appears to have peaked at ($15 billion), there’s still plenty of cushion for the VCs to get their money out and give the employees some liquidity.

They’ll probably torch the franchise in the process, but at least for a brief moment, they have created some real value for the shareholders.