Reddit is seeking to hire funding bankers and lawyers as half of its plans to go public early subsequent year at a worth of greater than $15 billion, Reuters reported Thursday.
Reddit most lately raised money in a personal fundraising spherical in August at a valuation of $10 billion — that means that an IPO at a valuation of $15 billion would characterize a dramatic 50 p.c enhance within the company’s valuation in only a matter of months.
The timing and measurement of the favored on-line message board’s IPO might change relying on market situations, sources informed the outlet.
The information comes three months after Reddit co-founder and CEO Steve Huffman teased the likelihood of an IPO earlier this year, telling the New York Times in May that the company was “thinking about” and “working toward” going public. He didn’t present particulars about timing or valuation.
Reddit — which was based in 2005 and is majority owned by Condé Nast mum or dad company Advance Publications — declined to touch upon the Reuters report.
Other traders in Reddit that would reap a windfall if the company goes public embrace enterprise capitalists Peter Thiel and Marc Andressen, celebrities Snoop Dogg and Jared Leto, in addition to Chinese tech big Tencent and US asset supervisor Fidelity Investments.
Reddit was identified within the 2000s and 2010s for its area of interest dialogue teams, or “subreddits.” The San Francisco-based company lagged behind different main social media rivals like Facebook and Twitter.
But Reddit noticed explosive development through the pandemic as retail traders flocked to the boards like r/WallStreetBets to speak about buying and selling “meme stocks” like GameStop and AMC, in addition to cryptocurrencies like bitcoin and dogecoin.
The web site had 52 million day by day energetic customers as of October 2020. Huffman has mentioned it gained thousands and thousands of new customers earlier this year through the peak of the buying and selling frenzy, however the company has not launched up to date statistics.
Reddit makes most of its money by means of promoting. It reported $100 million in promoting income within the second quarter, an virtually threefold bounce from the identical interval final year.
With Post wires