After years of speculation and anticipation, Reddit is reportedly gearing up for its initial public offering (IPO) in March 2024, reports Reuters. The San Francisco-based social media giant’s move into the public markets comes at a time when the social media landscape is witnessing intense competition, as well as public and regulatory scrutiny. A successful IPO will make it the first major social media company to do so since Pinterest went public in 2019.
While more details about the potential IPO are not up yet, it seems the company is looking to sell 10% shareholding in the IPO. Reddit was last valued at nearly $10Bn in a substantial $700 million round in August of 2021. The company had sought for an IPO then as well, though plans were later put on hold, with the company expressing a strategic preference to wait until it was closer to profitability.
The Reuters report also cites sources suggesting, that the IPO plans are not firm, and could well be pushed back, as has been the case previously.
Reddit, which calls itself as “the front page of internet”, has had an engaged and influential userbase. So much so, that while it plans for an IPO, the company’s users have been responsible for some of the biggest “meme stock” rallies in the near past. Notable of them, were GameStop and AMC Entertainment Holdings. Such was the influence of Reddit users in driving the GameStop price, that it led to a complete shut down of prominent hedge funds, and a recaliberation of their approach, now including a thorough social media research to factor in retail investors.
Founded in 2005, Reddit stands as a prominent player in the social media landscape. However, the platform has yet to turn a profit, a fact disclosed by Reddit CEO and co-founder Steve Huffman in June 2022. The company’s revenue streams primarily flow from advertising and a subscription-based premium access plan priced at $5.99 per month.