Reddit wants to be valued at $6.4 billion before going public
When its shares go public next week, Reddit, one of the most famous websites in the world, hopes to be valued as much as $6.4 billion.
The social networking business plans to list its shares on the New York Stock Exchange. The company has never turned a profit.
According to a document Reddit filed with the US Securities and Exchange Commission (SEC), the company plans to sell 22 million shares for $31 to $34 apiece.
Many people are concerned that the website will alter significantly as a result of the migration.
A certain portion of shares will be set aside for moderators and certain Reddit users.
Reddit is an online forum where people may ask questions and provide comments on things that interest them. It was started about 20 years ago.
The majority of the company’s revenue comes from platform advertising, but it recently reached an agreement with Google that gives the internet giant access to Reddit data for the purpose of training its artificial intelligence (AI) models.
Since its founding, Reddit has lost money every year—more than $90 million last year alone.
Furthermore, the valuation is far lower than the $10 billion that was assigned to it during a private funding round in 2021.
Presently, the largest investors are the American financial firm Fidelity, the Chinese Internet business Tencent, the media company Advance Magazine Publishers, and Sam Altman, the CEO of OpenAI, the company that makes ChatGPT.
