Popular user-generated link-sharing and discussion blog Reddit has declared independence from parent company, magazine giant Conde Nast, effective today, according to a post from Reddit general manager Erik Martin.
But unlike another other big tech blog declaration of independence made today, Reddit is doing so with the blessing of its corporate parent.
“They’re as excited as we are,” Martin, now an employee of Advance Publications, told TPM’s Idea Lab over the phone, noting that several Conde Nast execs will be joining the new Reddit board of directors (which is still being formed.)
“Reddit Inc. is now owned by Advance Publications (which also owns Conde Nast), so even though the organizational shift is important, reddit is not really going anywhere,” he added in the blog post announcing the change. “reddit Inc. will report to a Board and therefore have much more operational freedom than when we were a division of Conde Nast.”
Reddit, started by two 22-year-olds (Steve Huffman and Alexis Ohanian, who’s also written a favorable Google+ post on the recent transition), was acquired by Conde Nast in 2005. The site has seen explosive growth since then, with the number of monthly unique visitors tripling from 7 million to 21.5 million in the last 15 months.
That popularity ascent has placed a strain on the website’s small dedicated staff, who have worked to keep up with the technical demands of hosting so many new users; Posts from users complaining about website glitches have become routine. Reddit hopes the spin-off will, among other things, allow it to streamline its request for more resources from Advance.
Additionally, Martin told us that he thinks the separation will allow Reddit to “do a number of interesting things editorially,” including “advancing civic engagement and community journalism, especially internationally.”
“Most of Reddit’s current audience, is roughly, like many sites I suspect, 70-30 domestic (U.S.) and international,” Martin said. “But unlike a lot of websites, the discussions on Reddit cross national boundaries regularly and it’s not just people sticking to topics in their own countries. There’s a vibrant amount of sharing experiences from around the globe. We think that the new Reddit will be able to expand upon that.”
Also, Martin said that the business side of Reddit will benefit, with innovation in terms of “product and revenue stream.” Right now, the site primarily earns revenue from display advertising, but the new Reddit will offer “more engaging” revenue streams.
The spin-off had been proposed at least as early as March, when All Things D’s Peter Kafka reported that such a move was being contemplated and that it would value Reddit at approximately $200 million.
At the time, Reddit’s former lead technologist, Jeremy Edberg, denied the report, calling it a “complete fabrication.” (Edberg left the site in June, one of the last in an exodus of Reddit early employees.)
Martin couldn’t confirm how long the move had been in the works, but said it was safe to say that plans had been ongoing for “several months.”
Among the most exciting news for Reddit users and industry watchers alike: Reddit is now on the hunt a new CEO to take over the reins of the site. The company hopes to have this person on board before the end of the year, Martin said.
The site is working with a search firm to find the perfect candidate, but also “talking to people we know,” about filling the position, according to Martin. Necessarily qualifications include: risk-taking, a willingness to innovate and someone that will have fun doing it.
“All of the candidates are going to IAmA* with us, and whichever gets the best karma, that’s who gets the job,” Martin said (jokingly, we think.)
*IAmA refers to a recurring Reddit featured discussion thread, “I am a ____, ask me anything,” in which someone posts a short description of some odd or impressive quality or life experience they’ve had, and invites Reddit users to ask them open questions. Karma is Reddit’s points system, and users compete to earn the highest karma score, though it is mostly arbitrary and a matter of bragging rights.
