I get that, but who would want to buy a company that's never been profitable? It smacks of a scam. "Hey, bro! Buy my company! It never managed to make any money for me, but it'll be highly profitable for you!" Sounds like the company founder is looking to pull a fast one and laugh all the way to the bank while their investor is left holding the bag.
The only way I can see this working is if the idea is to build a large user base by offering a good user experience, i.e. not monetizing the platform very much, just enough so that it barely pays for its own operating costs. Then you sell that user base to someone else for the express purpose of shoving tons of ads down everyone's throat. In that case it's still a fast one, only in this scenario the users are the victims. But even then I'm skeptical. If that's the plan, why sell the company instead of enshittifying your platform yourself?
it's a lot easier to find someone who thinks they can do it than it is to actually successfully do it yourself
That's pretty much what I said, though. That's the core of the scam. You sell something you know to be worthless to someone too ignorant to understand that. Maybe I'm just extremely ignorant and naive in matters of business, but selling a fake company like that seems no different than selling pyrite to someone who can't tell it apart from gold.
Fidelity has cut Reddit valuation to $5.5B from $10B (techcrunch.com)