top of page
  • 1440 Daily Digest

Reddit Readies IPO



Reddit yesterday revealed plans to raise up to $748M in next week’s planned initial public offering at a valuation of close to $6.5B. The IPO will mark the first US social media offering since Pinterest’s $10B debut in 2019.


Reddit, which hosts web forums, is the world's 15th most visited website, boasting 267 million weekly active users. Founded in 2005, the San Francisco-based company has not yet been profitable, relying primarily on advertising revenue. It generated $803M in revenue last year but ran at a $91M loss (down from $159M in 2022).


The company plans to sell 22 million shares (priced between $31 and $34 each) and is setting aside 8% of shares for employees and their friends and families, as well as certain users and moderators. Users on r/WallStreetBets—a Reddit forum that promotes meme stocks—have threatened to short Reddit’s stock amid concerns over profitability. 


The IPO comes after Reddit revealed a $60M contract with Google last month, allowing Google to train AI models on Reddit content. 

3 views0 comments

Recent Posts

See All

Comments


  • Facebook
  • YouTube
bottom of page