OpenAI’s Sam Altman Enjoys Lucrative Gains from Reddit IPO
The recent red-hot market debut of Reddit (NYSE:RDDT) has not only injected energy into the initial public offering (IPO) market but has also resulted in substantial gains for key investors. Among these investors are Sam Altman, the top boss at OpenAI, and Steven Newhouse, the co-president of Condé Nast-parent.
Following Reddit’s impressive 48.4% surge in its debut on the New York Stock Exchange, Altman’s stake in the company saw a significant increase, rising by approximately $200 million to a total of $613.3 million. Likewise, Newhouse’s stake skyrocketed by nearly $700 million to reach a substantial $2.13 billion.
As per Reddit’s prospectus, Newhouse, through Advance Magazine Publishers of Condé Nast, is one of the largest shareholders of the company, possessing a 26.5% stake post-IPO. Advance, which is renowned for publishing top-tier magazines like GQ, Vogue, and Vanity Fair, also holds significant stakes in Charter Communications (CHTR) and Warner Bros. Discovery (WBD).
Furthermore, the prospectus indicates that entities associated with Sam Altman hold the third-largest stake of 7.6% in Reddit after the IPO, trailing only Advance and Chinese gaming giant Tencent, which holds a 9.7% stake.
Altman, like other insiders, is subject to a lockup period preventing the sale of any Reddit shares for six months. His loyalty to Reddit is evident from his personal investment in the company in 2014, following nine years of being an avid daily user of the platform.
The impressive gains made by Altman and Newhouse following Reddit’s market debut underscore the platform’s promising prospects and the confidence of major investors in its future growth trajectories.
