Reddit Plans IPO, Aims to Raise $748 Million

Social media platform Reddit is preparing for its initial public offering (IPO) and intends to generate $748 million by selling 22 million shares. The shares are priced between $31 and $34 each. Notably, Reddit is allocating about 1.76 million shares in the IPO for users and moderators to buy, without any lockup period restrictions.

The company’s valuation was initially targeted at $6.5 billion, with plans to go public after facing several market fluctuations. Reddit experienced fundraising in 2021, valuing it at $10 billion. However, market conditions have prompted the company to reconsider its valuation, aiming for at least $5 billion, according to early feedback from potential investors.


Reddit, founded in 2005, has steadily grown its user base, averaging 73.1 million daily active unique visitors in Q4 2023. In terms of financials, the company reported a net loss of $91 million on revenue of $804 million in 2023, showcasing a reduction in losses compared to the previous year.

Advance Magazine Publishers Inc., the largest shareholder of Reddit, purchased the platform in 2006 and later spun it out in 2011. The IPO will be closely monitored by other companies considering going public, such as Rubrik Inc. and Waystar Technologies Inc.

The offering is led by major financial institutions, including Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. Reddit anticipates trading its shares on the New York Stock Exchange under the symbol RDDT.

In addition to advertising being its primary business, Reddit is exploring new opportunities, such as AI licensing, allowing third parties to license platform data for training artificial intelligence models. The company has also entered data licensing agreements, expecting substantial revenue from these deals.

Reddit co-founder and CEO Steven Huffman expressed confidence in the growth potential of both the platform and the business. Despite challenges posed by user revolts and competitive concerns, Reddit remains a significant player in the social media landscape.

The IPO date and further details will unfold as Reddit progresses in its public listing journey.

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