Whether due to bad timing in the market or general hubris, Reddit won't sell until it reaches the likes of Yahoo and the Ruperts of the world. Every day they look more and more like Digg v4, their own raison d'être
This requires low short-term and long-term rates for more than one fund cycle. That puts the IPO out, at a minimum, 5 to 7 years. It also puts it at odds with most near-term rates forecasts. If Reddit is waiting for peak valuations to go public, they'll be waiting for 10+ years or, more likely, be bought while running out of money, because waiting for multiples to change as a business strategy is a piss poor one.
Present multiples do not convey this is a fearful market [1].
Ultimately, remaining private and trying to grow a sustainable, profitable business isn't going to be what they choose. I didn't even get into the porn situation, which may be why they decide to just go the tumblr route and try and cash out to a larger tech co though.
This sounds like something management would claim, but how so? What's inherently more appealing or engaging about the app, especially when you're practically forcing people to use it?