Reddit, the popular social platform, revealed it is filing for an initial public offering (IPO). The move is expected to occur when the Securities and Exchange Commission (SEC) completes its review process.
The platform is unable to offer any information on shares or prices until after the quiet period has ended, in order to prevent trade secrets from being exposed before an IPO date is determined, as per SEC regulations. Long-running speculations regarding Reddit’s ambitions for a public offering were verified by the SEC filing.
Reddit raised $700 million in new capital in August, valuing the company at more than $10 billion. Reddit recently announced that it made $100 million in ad income in the second quarter of 2021, an increase of about 200 percent over the previous year.
Hi, we have some news. pic.twitter.com/DjkjBRloHF
— Reddit (@Reddit) December 16, 2021
In a statement with the US Securities and Exchange Commission, Reddit stated, “The initial public offering is planned to occur when the SEC completes its review process, subject to market and other conditions.”
Ad-supported social media services like Meta and Twitter compete with Reddit. Huffman claims that the company has grown up in the shadow of Facebook, now Meta, and Google, and that every dollar earned is a battle. Reddit, on the other hand, has already formed its own cryptocurrency in the shape of RCPs, or Reddit Community Points.
Reddit had 52 million daily users and more than 100,000 active subreddits as of August. Reddit is a popular gathering location for infamous meme stock r/wallstreetbets, which has had a huge influence on stock markets and cryptocurrency markets this year with its retail trading and pumping methods, as well as a forum where seasoned traders assemble to share their skills. Because of the group’s popularity, a crypto counterpart, r/SatoshiStreetB, was created, which presently has 509,000 members.