However, Conde Nast no longer owns Reddit directly, so Reddit has no effect on Conde Nast's net income (only their shared parent company's).
Also, in Reddit's case, an argument can be made that it's a 'loss leader' - it may be operating in the red, but the value it adds to their portfolio of publications as a whole justifies the cost.
(Consider, for example, the alternative: shutting down an unprofitable Reddit, at which point all the users flock to the "next" discussion website which they don't own and control.)
Comments
Reddit was, at least recently, in the red.
However, Conde Nast no longer owns Reddit directly, so Reddit has no effect on Conde Nast's net income (only their shared parent company's).
Also, in Reddit's case, an argument can be made that it's a 'loss leader' - it may be operating in the red, but the value it adds to their portfolio of publications as a whole justifies the cost.
(Consider, for example, the alternative: shutting down an unprofitable Reddit, at which point all the users flock to the "next" discussion website which they don't own and control.)