Their MAU number is ridiculously inflated. If you have a login, and a search result brings you to Reddit, and you look at that page, you're "active." They also have a horrifically antagonistic ad paradigm; you pay a lot to get pilloried for advertising.

Any reasonable assessment of value would put Reddit at a few orders of magnitude less. When Digg finally sold it sold for $500k. Any media empire that can go from $200m valuation to $500k valuation in 18 months was never worth $200m.