Reddit in talks with Google for new content sharing deal

Reddit is in talks with Alphabet Inc.'s Google for a new content sharing deal. The deal would allow Google to access and monetize Reddit's user-generated content. The exact terms of the deal have not been disclosed. Alphabet Inc. operates various businesses, including Google, YouTube, Gmail, Nest Labs, Calico, Google X, Google Ventures, and Google Fiber. Net sales are distributed geographically with the United States accounting for 48.7%.

Reddit Inc. is currently engaged in preliminary discussions with Alphabet Inc.'s Google to establish a new content-sharing agreement. This potential partnership aims to deepen the integration of Reddit's user-generated content with Google's AI products, according to a report from Bloomberg News Reddit in talks with Google for deeper AI content partnership - Bloomberg^[1]. The discussions come more than 18 months after Reddit's initial data-sharing deal with Google, which was reportedly worth $60 million.

The new proposal seeks to create a structure that would encourage users to actively contribute to Reddit’s forums, allowing Google traffic to help the platform grow while generating content for future AI training. This move aligns with Reddit's strategy to maximize the value of its data, which is increasingly playing a key role in search results and generative AI training.

This development has sparked interest in the financial community, with Reddit Inc. stock gaining attention on Wednesday after the report Reddit Reportedly Seeks New Deal With Google For AI Content^[2]. Reddit stock inched 0.4% lower on Wednesday afternoon and became the second-most trending ticker on Stocktwits.

Institutional investors have also shown interest in Reddit Inc. New England Research & Management Inc. acquired 1,450 shares of Reddit Inc. shares during the second quarter, valued at approximately $218,000 1,450 Shares in Reddit Inc. $RDDT Acquired by New England Research & Management Inc.^[3]. Other institutional investors have also made changes to their positions in the company, reflecting a generally positive outlook.