Newhouse Billionaires’ 5,800% Reddit Gain Eases Media Woes
- Family behind Conde Nast invested $10 million in 2006
- Newhouses’ print media, TV businesses have been struggling
The Newhouse family has watched one billionaire clan after another surpass its wealth as its multi-generational media business sputtered. Its $26 billion fortune from a decade ago has barely grown, save for one key wager: Reddit Inc.
The Newhouses’ $10 million initial investment in the nascent social-media company in 2006 is now worth more than $2.1 billion after shares surged 48% in its trading debut Thursday. After additional investments in the company calculated to be in the tens of millions, the family notched a more than 5,800% return, according to the Bloomberg Billionaires Index, making them the biggest beneficiaries of one of the year’s most anticipated initial public offerings.