Reddit is gearing up for its highly-anticipated initial public offering (IPO) with a target valuation of $6.4 billion. The popular social media platform, known for its diverse range of communities and discussions, is set to debut on the New York Stock Exchange under the ticker RDDT by the end of this month.
Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a mega-website that combines elements of social media, message boards, and news aggregation. The company plans to offer around 22 million shares priced between $31 and $34 each, potentially raising up to $748 million in the process.
With 100,000 active communities and 500 million unique visitors in December 2023 alone, Reddit has become a major player in the online space. The upcoming IPO will see 8% of shares reserved for users, moderators, board members, and their families and friends, highlighting the platform’s commitment to involving its community in its success.
However, some have raised concerns about the platform’s future direction, particularly in relation to its ties with OpenAI CEO Sam Altman, who holds a significant stake in the company. Questions have been raised about how Reddit’s focus on AI technology may impact the user experience and whether going public will change the platform’s core values.
As Reddit prepares to go public, all eyes will be on how the company navigates this significant milestone and balances the interests of its users, shareholders, and the broader online community.
