Reddit Plans March IPO Amidst Growing Valuation

Reddit which is valued at $10 billion after a 2021 investment round is known for embracing emerging technologies like Web3 and AI.

According to a report by Reuters, the social networking behemoth Reddit is planning to undertake its initial public offering (IPO) in March.

The initial public offering (IPO) is expected to sell approximately ten percent of the company’s shares, with the valuation of the company being disclosed around the time of listing.

The social media giant’s worth was estimated to be ten billion dollars after completing its investment round in 2021. It will be the first significant social media initial public offering (IPO) since Pinterest’s in 2019 if Reddit intends to go public within March.

Reddit quickly established itself as a well-known online community in 2005, where users could talk and share their experiences through a variety of subreddits.

In addition to this, the platform is well-known for its ability to keep up with emerging technological developments, such as Web3 and artificial intelligence. Reddit was one of the first social media platforms to incorporate capabilities for crypto tipping, and in 2022, it also created a scheme for nonfungible tokens.

The company faced criticism when it announced plans to charge corporations for access to its application programming interface (API), commonly used by technology companies to train massive language models for artificial intelligence.

According to the sources that Reuters quoted, Reddit submitted a confidential application for its initial public offering (IPO) in December 2021.

The company intends to make its public filing in late February and then launch its public offering in early March. According to reports, the social media company postponed its intention to do a public offering until it achieved profitability.

According to Reuters, the social media behemoth anticipated that it would make over $800 million in advertising revenue in 2023. The majority of the company’s revenue comes from advertising and premium subscription programs.

Reuters citing people familiar with the situation, indicated in its report that there is a possibility that the schedule for the initial public offering (IPO) could be delayed as was the case in the past.