Reddit Purchased by Wired - Technology Evangelist

VentureBeat is reporting that Wired has acquired social bookmarking site, Reddit:

The purchase price is unknown, suggesting it wasn?��Ǩ�Ѣt for much, but the Boston start-up was founded only last year, and was built on a mere $100,000 in funding. It is a competitor to San Francisco?��Ǩ�Ѣs Digg, though is the lesser known.

We've been lucky enough to appear on the front page of Reddit in the past, and can say from experience that the site has a lot of users based on the traffic it generated for our site. The site is much smaller than Digg, but I think the personality of the site differentiates it as much as the size. The audience tends to front page more political topics than the largely tech focused Digg.

I think network effect plays a large roll in the long-term success of companies in this space. Companies need to become the dominant player in the space, which Digg seems to be on track to do, or specialize in an underserved niche like Hugg.com has chosen to do. What will Wired do?

Amr, if that figure is correct (or even ballpark) it sounds like Paul Graham's incubator, YCombinator, did pretty well on their $100,000 investment and the developers made WAY more than they would have working for The Man for the same amount of time.

Comments

1. Posted by: Amr on November 1, 2006 3:00 PM:

Well, I'm hearing that it is for 65 million, which is not exactly chump change unless you compare it to youtube's price. But YouTube has more advertising potential than reddit which is more geek specific.

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