Reddit (RDDT) shares fell more than 8% on Wednesday.
A Wall Street Journal report indicates the company is considering blocking Google (GOOGL) from using its content to train artificial intelligence models. The two companies are currently negotiating a renewal of their data-licensing agreement.
The original partnership, established in 2024, is valued at approximately $60 million annually. Reddit is re-evaluating the deal as Google’s AI-powered search summaries threaten to reduce direct traffic to its platform.
Referral traffic remains a critical driver for Reddit’s core advertising revenue. This potential standoff creates significant uncertainty for a key pillar of the company's recent monetization strategy.