Advance Publications bought NY-based Reddit for less than $5 million in 2006. Now its estimated value is upwards of $240 million. Bob Sauerberg, president of Advance’s Conde Nast magazine division, said that they basically left the startup alone so they wouldn’t screw it up.
Forbes recently reported that Reddit is a thrifty company and needs only a smattering of ad revenue to cover expenses. Aaron Magness, marketing vice president at Coastal.com, says to Forbes Reddit’s seedier posts don’t bother his company, which sells eyewear online. They advertise on the site’s front page, which doesn’t have questionable content. As long as they stay away from the more offensive areas, Magness says they’re safe.