Reddit doesn’t have a cash problem. They had $20 million in the bank when they were given partial independence by Conde Nast two years ago and unless they’re buying solid gold servers and platinum-plated Macs to run the site, they probably have enough to keep going without a hitch for another decade. When Techcrunch reported rumors that the social news giant was looking for investors against a $400 million valuation, many of us wandered why they would risk losing their status as one of the most community-driven websites on the planet by playing into the hands of profit-driven venture capitalists.
Journalists will hate hearing this. Bloggers will hate it even more. I’m to the point where I’m starting to hate myself for thinking it.
Michael Arrington has some good points about TechCrunch, CrunchFund, his role in blogging/journalism, and the conflicts of interest (or lack thereof) in having his cake and eating it, too.
Bloggers around the internet are patting themselves on the back. They are saying, “I told you so,” about the AOL/Techcrunch/HuffPo experiment. I, for one, am surprised. Call me silly, but I was cautiously optimistic that it wouldn’t blow up into a major debacle and that Arrington would be able to meet his 3-year commitment to AOL with only minor disturbances in the force.
I was wrong.