April 19, 2024
March IPO on the Horizon: Reddit's Public Debut Plans Revealed
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March IPO on the Horizon: Reddit’s Public Debut Plans Revealed

In a move that could mark a significant event in the tech industry, social media giant Reddit is reportedly gearing up for its initial public offering (IPO) in March, as revealed by sources in a recent Reuters report.

According to the report, the San Francisco-based company is set to offer approximately 10% of its shares during the IPO, with the exact valuation to be disclosed around the time of the listing. Reddit achieved a valuation of $10 billion following its funding round in 2021.

If the IPO proceeds as planned in March, it will be the first major social media IPO since Pinterest’s debut in 2019. Founded in 2005, Reddit has evolved into a popular online forum where users can engage in discussions and share experiences through various subreddits. Notably, the platform has kept pace with emerging technology trends, delving into areas like Web3 and artificial intelligence.

Having been among the pioneers in integrating crypto tipping features, Reddit also ventured into the world of non-fungible tokens (NFTs) with a program introduced in 2022. However, the company faced criticism when it announced plans to charge companies for access to its application programming interface (API), a tool utilized by technology companies for training large language models used in artificial intelligence.

According to sources cited by Reuters, Reddit confidentially filed for its IPO in December 2021, with intentions to make its public filing in late February, followed by the official launch in early March. The decision to go public reportedly comes after Reddit achieved profitability.

While the majority of Reddit’s revenue is derived from advertising and premium subscription plans, the company anticipates generating around $800 million in advertising revenue in 2023, as reported by Reuters.

Despite the outlined timeline, Reuters cautioned that the IPO schedule might encounter delays, as has happened in previous instances, based on information from sources familiar with the matter. The IPO announcement from Reddit is eagerly anticipated by investors and industry observers alike, as it could potentially shape the landscape for future social media offerings and further solidify Reddit’s position in the evolving digital space.

Image: Wallpaper Flare

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