• by Ray Schultz , Columnist, March 22, 2024

We should all have such hunches.  

In 2006, Condé Nast bought a social media company called Reddit for $10 million. On Thursday, Reddit's shares were initially priced at $34 in the unprofitable firm’s first day on the stock exchange. 

Think again. Reddit shares topped out at $50.44  for the day, 

Selling shareholders raised $750 million, with $519 going to Reddit.  

This comes as a godsend to Condé Nast, which reported flat revenue growth to Axios earlier this month, although it released no numbers. The main cause for this drop was declining print advertising sales. Earlier, over 2o0 people were targeted for layoff. 

But it seems Condé Nast could now have some breathing room. 

The founding Newhouse family owns roughly a third of the outstanding shares through its Advance Publications, according to The New York Times. The possible windfall? $1.4 billion.(Note: Later reports put Thursday's bonanza for the Newhouses at $2.1 billion).

The company spun Reddit off as a separate firm in 2011.  

The outcome of all this is not yet clear There is a delay before Advance can cash in all its shares. It remains to be seen if the price will hold, although big scores have already been made. 

Editorial wage slaves hope Condé Nast will rehire some staff, or at least avoid further layoffs. But there is one outcome that is more certain.  

Publishers everywhere are going to wonder if they’re in the right business .