Social media giant Reddit is reportedly exploring the possibility of going public through an initial public offering (IPO). According to Bloomberg, the company is engaged in discussions with potential investors regarding the IPO. The San Francisco-based company, founded by Steve Huffman, Aaron Swartz, and Alexis Ohanian in 2005, is contemplating a public debut as early as the first quarter of the upcoming year.
Key Takeaway
Reddit is reportedly in talks with potential investors for an IPO, considering a public debut as early as the first quarter of the upcoming year. The social media giant had previously filed a draft registration statement with the SEC but did not proceed with its IPO plans. The company had raised $410 million in financing and had enlisted the services of Morgan Stanley and Goldman Sachs to aid in the listing process.
In December 2021, Reddit had confidentially submitted a draft registration statement to the Securities and Exchange Commission (SEC) for a potential IPO. However, those plans did not materialize. This submission came shortly after Reddit successfully raised $410 million in financing, with Fidelity leading the investment round. This financing round valued Reddit at $10 billion, and the company had intended to close the Series F round at $700 million.
In January 2022, Reddit had taken steps towards going public by enlisting the services of Morgan Stanley and Goldman Sachs to facilitate the listing process. At that time, Reddit was considering a valuation of up to $15 billion. However, the exact valuation at which the company would go public next year, if it chooses to proceed with the offering, remains unknown.
When reached for comment, a spokesperson from Reddit stated that the company is currently in a quiet period and is unable to provide any further information.
