Reddit disclosed on Wednesday that the company had confidentially filed for a proposed initial public offering (IPO) with the U.S. Securities and Exchange Commission. The social media platform, known for its message boards and forums, is finally ready to go public.
As of October last year, Reddit had roughly 52 million daily active users and over 130,000 communities, or “subreddits.” As of April 2021, Reddit is the 15th most-used social platform worldwide, behind Pinterest. The site is the most popular among users in the 25 to 29 age group.
Reddit going public
Reddit has not yet determined how many shares to offer or the price range for its initial public offering. The company’s most prominent investors are Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings.
According to public information, Reddit has raised $1.3 billion in funding. In 2019, Tencent raised a big part of Series D funding with $300 million. Many feared that this could bring censorship to the social media platform. Thankfully, nothing happened on that front.
Reddit and the Stock Market
Earlier this year, the company was valued at $10 billion in a private fundraising round. However, during the Gamestop and meme stock frenzy, Reddit became the go-to place for many traders. Due to this, the platform evaluation jumped to more than $15 billion in September.
Reddit has become a pivotal platform for the stock market and public discussions. Riding on the hype of its financial communities, Reddit broke $100 million in advertising revenue in Q2. It played a pivotal role in the stock market for companies like Gamestop and AMC.
However, the social media giant also challenges moderating hate speech on its platform. Reddit presents itself as a home for many communities while promising to fight against hate speech and other forms of inappropriate behavior online.
The company’s decision to go public is big news for the entire tech industry and the stock market. Many consider Reddit going public to be one of the biggest IPOs recently.