Social network Reddit is ready to enter the market
The social network Reddit has announced its desire to go public on the New York Stock Exchange, it has already filed documents for an IPO. So far, the management has not yet disclosed the number of shares that will be listed, the value of the securities is also unknown. According to some sources, Reddit plans to raise about $15 billion as a result of the listing.
In early 2021, the popular social network received $250 million in investments, then the company’s valuation reached $6 billion. In the summer of that year, Reddit held another round of funding, in which it received $700 million. At that time, the platform was valued at $10 billion, with Fidelity Management, Research and others as investors.
Reddit is actively preparing to go to market. To this end, management has hired a new CFO, who previously held a post at Snap. He did the latter’s IPO in 2017.
Investor interest increased dramatically after the network’s users rallied against the collusion of big investors in the stock market. Reddit regulars began actively buying up GameStop stock in an effort to inflate quotes. As a result, the major market players incurred losses, but the chain of stores selling games and their equipment was saved from closure. In the summer of 2021 the users of the social network opposed the cooperation with the online broker Robinhood. The reason was the stoppage of trading during the situation with GameStop. The participants urged to ignore the platform, which at that moment carried out an IPO, but Robinhood still entered the exchange.
Reddit is a portal that combines a social network and a forum where users can exchange links and discuss certain news. The site was created in 2005 by two university graduates; a year later Reddit merged with the company Infogami. Since 2008, the platform has been considered an open-source project.
The network users are known for their social position and active participation in various initiatives. For example, in 2010, after the earthquake in Haiti, they collected about $180,000 in aid for those affected. In 2012, the platform didn’t work, which was a reaction to the Stop Online Piracy Act initiative.
At the moment, Reddit’s user audience is 50 million people daily. The platform includes a huge number of forums on various topics, as well as meme exchange MemeEconomy, where you can buy a huge number of memes.
Reddit gets its revenue from advertising. Last quarter it totaled $100 million, almost three times the amount of the year before.