Reddit, the prominent social media platform, is preparing to initiate an initial public offering (IPO) in March, according to information from Reuters. The company, based in San Francisco, intends to offer approximately 10% of its shares during this IPO, and will disclose its valuation close to the listing date. Following a funding round in 2021, Reddit's value was estimated at $10 billion.
This move to go public in March would mark Reddit as the first significant social media IPO since Pinterest's in 2019. Established in 2005, Reddit has risen to prominence as a widely-used online forum where users engage in discussions and share content across various subreddits.
Reddit has consistently embraced new technological advancements, including Web3 and artificial intelligence. It was among the first social media sites to incorporate cryptocurrency tipping and launched a non-fungible token (NFT) initiative in 2022. However, the company faced criticism for its decision to charge for access to its application programming interface (API), vital for training large language models in AI. Reddit initially filed for an IPO confidentially in December 2021 and aimed for a public filing in late February, with a launch envisioned for early March, as per Reuters sources. The company's IPO plans have been reportedly postponed until it achieves profitability.
The majority of Reddit's revenue is generated from advertising and premium subscription services. Its advertising revenue is projected to hit around $800 million in 2023. However, Reuters' sources caution that the timeline for the IPO could face delays, as has happened in the past.
