The IPO of Reddit is scheduled for this month of March, with shares initially sold between $31 and $34, for a valuation close to $6.5 billion.
Reddit is going public. If the unfavorable economic context makes investors cautious on the financial markets, the social network should not encounter problems attracting capital.
From 10 to 6.5 billion in 3 years
According to the press agency Reuters, which mentions two corroborating sources close to the matter, Reddit is targeting a valuation of $6.5 billion during its IPO. The company will price between $31 and $34 for each share.
The total shares offered for sale at the time of the IPO will be divided between newly issued shares and shares already held by investors and employees of the company.
Reddit’s valuation has fallen sharply in recent years, since it was valued at $10 billion in 2021, when the platform managed to complete a financing round to seek new financing.
A growing platform
A few days ago, while presenting its IPO file, Reddit revealed that it had recorded a growth of 21% in its revenues in 2023 ($804 million compared to $666.7 million). This increase in turnover, however, is not enough to make the service profitable, since its net loss amounted to $90.8 million last year.
Reddit claims 73.1 million daily active users on average and 267.5 million weekly active users in the last quarter of 2023. The platform brings together 100,000 active communities and hosts more than a billion publications.
For the record, know that a certain Sam Altman, current director of OpenAI, was a member of the board of directors of Reddit between 2015 and 2022. He still holds a strong stake in the company today. Still in relation to AI, one of Reddit’s sources of income comes from the use of its content by Google to train its language models.
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- A very large community (provided you understand English)
- Tons of topics covered
As long as you understand English, Reddit is a fantastic source of information that you can use for entertainment, news monitoring, or even searching for practical information (among other things) . This is one of the most active communities on the internet, offering tons of content of all kinds, regardless of your own interest. The Android application is clear, practical to use and allows seamless navigation among the many subreddits.
As long as you understand English, Reddit is a fantastic source of information that you can use for entertainment, news monitoring, or even searching for practical information (among other things) . This is one of the most active communities on the internet, offering tons of content of all kinds, regardless of your own interest. The Android application is clear, practical to use and allows seamless navigation among the many subreddits.
Source : Reuters
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