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Is Reddit Really Worth $240 Million?

Submitted by on November 6, 2012 – 2:37 pmNo Comment

Reddit is doing pretty well these days. Despite having a boring site layout, it still racks up about 3.4 billion page views a month. Yes, 3.4 billion. Our response: Word?

Forbes contributor George Anders recently dug through Reddit’s incorporation papers (which were quietly updated in Delaware a few months ago),and found some interesting information suggesting Reddit may be worth around $240 million.

“Advance has recapitalized Reddit,” Anders wrote, “taking the site out of its Conde Nast division and allowing Reddit employees to own a sizable minority of newly issued stock. As part of that recapitalization, Advance bought $20 million of convertible preferred stock in Reddit and put in provisions saying that if Reddit is ever sold for less than $240 million, the conversion terms will be rejiggered so that Advance comes away with a bigger slice of Reddit and employees get less. Those calculations imply that Reddit is already on track to be worth at least $240 million.”

Wow. $240 million? Interesting…

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