> It sold for a lot, suddenly the new owners are eager to get returns on that investment.
Reddit launched in June 2005, sold to Condé Nast in October 2006, and was spun off as an independent company with Advanced Publications (Condé Nast's parent) maintaining a majority interest in 2011. So it's only actually been sold once, back in 2006, and that was not for a lot of money -- under $20M. Maybe there's a billion dollar exit in the company's future, but there definitely hasn't been one in its past.
(N.B.: I doubt there's one in its future, either.)
> The point being the current parent expects more than may make sense and appears willing to devalue what they have to get there.
The people in charge may absolutely expect more return than makes sense and may be willing to devalue what they have to get there -- but those very same people were literally there at the beginning. What I was getting is that there is no "current parent". Reddit is, as of this writing, an independent company whose current CEO is one of its original founders, and whose executive chairman until recently was one of its other original founders.
So I guess I just think this is a more complicated case than the usual story of "great thing ruined by new owners." If Reddit is being ruined by executives who don't understand the the product, it's not because the original founders sold out to uncaring corporate overlords -- it's because they chose to become uncaring corporate overlords themselves. It's not at all impossible that former corporate overlords at Condé Nast may have understood the value of Reddit better than Reddit's creators do.
It sounds like what you’re describing is what is commonly referred to in the HN crowd as a lifestyle business.
They generate a good life for their owners, although less than billions, are self sustaining, are privately owned, and often times the brands are known for quality, uniqueness, or exceptional user experiences.
Wolfram Research, author of Mathematica and Wolfram Alpha, is a great example of this type of business as a software company.
Small nit : the founder of Ikea is the eigth-richest person in the world (58G$). Though I suppose it's easier to amass wealth if one does not pay taxes.
It sold for a lot, and suddenly the new owners are eager to get returns on that investment.
And here we are.
A new Reddit, that somehow does not get sold, would run just fine without all the BS and people would love it and do damn near anything for it.
I consider Reddit a great example of why a public utility type model could work and serve users much better than what exists right now.
Or... some other ownership model that does not include a billion dollar exit would do the same and mean a very nice living for whoever does it.