Here’s everything that you need to know about Reddit’s IPO:
Is Reddit a social media platform?
Reddit is a social media platform, but it’s unlike Facebook, Twitter, Instagram, and everything else. Instead of building a network around people, Reddit uses communities that attract users from all over the world. Because of its unique combination of anonymity and verifiable sources, Reddit has become the go-to site for a lot of people, especially in media. It’s effectively a souped-up forum with social media aspects, making it user-friendly and convenient for users.
Facts about the Reddit IPO
Reddit made a very brief and straightforward announcement that it was going to go public by offering a traditional Initial Public Offering, otherwise known as IPO. What makes Reddiot’s IPO quite surprising is all the secrecy behind it. The company didn’t even confirm how many shares it will offer and how much each scare will cost. Not to mention, Reddit did not confirm its stock tricker or which market it will trade on. Effectively, the only thing that we know about Reddit’s IPO is that it has “confidentially submitted a draft registration statement on Form S-1.”
Why is Reddit keeping its IPO a secret?
Reddit isn’t necessarily keeping its IPO a secret so much as it is taking its time deciding how much it wants to raise. Because of this, it doesn’t know how many shares it wants to offer as well. It’s only natural that Reddit wants to take its time with its IPO. The company’s IPO will be one of the hottest IPOs of 2022 if not 2023, so we shouldn’t expect Reddit to reveal more details about its IPO until we’re closer to it.
How much is Reddit worth now?
Steve Huffman and Alex Ohanian founded Reddit back in 2005. The website reported advertising revenue of $100 million in the second quarter earlier this year. Meanwhile, the company valued itself at $10 billion in a recent private fundraising round. However, with the IPO, Reddit’s value could skyrocket. The only question here is by how much. Twitter, with 211 million monetizable daily active users, is worth around $35 billion. At the same time, Facebook has a valuation of almost $1 trillion. Both have significantly more daily active users compared to Reddit, especially Facebook, which sees around 2 billion daily active users.
