All Things Digital recently posted an article titled "If You Love Something, Set It Sort-Of Free: Condé Nast Mulling Reddit Spin-Off." In essence, the report stated that Condé Nast, which bought Reddit five years ago, is considering spinning out the social news site and is talking to investors about selling a stake. Supposedly, the parent company is giving Reddit at a $200 million valuation.
The article was unsurprisingly submitted to Reddit. On one of the three submissions, Reddit user jedberg commented "This article is a complete fabrication. He should be ashamed to call himself a journalist." When questioned about it, he followed up by saying "I confirmed it with the Newhouse family myself." Condé Nast is run by Samuel Irving Newhouse, Jr.
All Things Digital responded with the following:
[Update: Reddit employee Jeremy Edberg says, among other things, that my report is a "complete fabrication". I stand by my story.]
Reddit has become very popular with the downfall of its biggest competitor, Digg. Two months ago, the website reported that it was getting 1 billion page views per month. Despite this, Reddit has a very small staff (just a handful) that has recently seen multiple people depart and new people join. In short, the site is doing amazingly well on the outside, but internally it has many problems that need to be resolved sooner rather than later.