Reddit's $10M Early Sale
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A story about Reddit's early exit and subsequent journey, as told by Sam Parr and Shaan Puri.
"Reddit sold to Conde Nast in 2006, just 16 months after starting. Alexis Ohanian said he would be getting more money than his parents had made their entire working lives. It was a $10 million exit, and Steve and Alexis each walked away with $2 million.
They didn't know there were other options like raising money or doing other things, so they just sold. But then they ended up getting Conde Nast to spin it out, and they bought it back. When they raised money after that, Sam Altman's fund got 8% of the company, which is now worth something like a billion dollars plus.
Reddit has gone through all types of drama - a CEO was fired, then a week later another CEO was fired. Sam Altman was even interim CEO for one day. Now, 19 years later, Reddit is the 10th most visited website in the country, but remarkably, the company is still not profitable. It's crazy that after 19 years it's still not profitable, but everybody who built it made a lot of money."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.