Reddit has taken a huge step towards bringing it to the public. In a press release, the company revealed that it had confidentially submitted a draft registration statement to the US Securities and Exchange Commission regarding its “proposed initial public offering of its common stock.” The announcement provides very few details about the planned IPO, which is expected to take place after approval by the Securities and Exchange Commission.
The social network also said it had not yet decided how many and how much of the posts would be shown. It’s likely to reveal an initial valuation in the near future as it prepares to go public, but it’s worth noting that it raised $700 million in a funding round last August at a valuation of more than $10 billion.
according to ReutersReddit sought to hire bankers and investment lawyers in September as advisors for a planned initial public offering in New York. While the timing of the IPO will depend on market conditions, Reddit was clearly hoping the company could be worth more than $15 billion by the time it happens next year. In March, the company also appointed Drew Vollero, who led Snap’s IPO in 2017, as its first chief financial officer.
Reddit was founded in 2005 and its popularity as a news aggregator, message board, and social media website has risen ever since. In the second quarter of this year, it generated $100 million in advertising revenue — 192 percent more than it did in the same period in 2020 — for the first time. Going forward, it intends to find more ways to integrate video and audio into its website, which could lead to more ad revenue.
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