Reddit in Talks with Google to Boost Revenue and User Base
Reddit is in talks with Google to expand their partnership, aiming to better monetize its unique discussions that are increasingly valuable to AI platforms like ChatGPT. The potential deal could significantly boost Reddit's visibility and revenue.
Reddit executives believe their platform's discussions are currently undervalued in existing agreements. They are exploring a shift from flat fees to dynamic pricing, where payouts from Google or OpenAI could increase as Reddit's data becomes more central to AI answers.
The proposed partnership aims to convert more Google traffic into active Reddit users by working more closely with Google's product teams. This could involve integrating Reddit content more directly into Google's AI products, potentially shifting visibility for brands and SEOs.
The potential new deal builds on Reddit's first Gemini data-sharing deal, worth $60 million, and broader licensing agreements worth $203 million, signed in January 2024. While licensing deals between AI companies and content providers are accelerating, some providers like Chegg and Penske Media are suing Google over the impact of AI Overviews.
Reddit and Google are discussing a new partnership that could significantly enhance Reddit's revenue and user base. The deal, if finalized, would build on existing Gemini agreements and reflect Reddit's growing importance to AI platforms. However, the outcome remains uncertain amidst ongoing legal disputes involving similar partnerships.
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