Reddit, the San Francisco-based social media platform, is reportedly gearing up to launch its initial public offering (IPO) in March, as per a new report from Reuters. This move comes after more than three years of speculation about Reddit’s plans to go public.
Key Takeaway
Reddit is reportedly making preparations to launch its IPO in March, aiming to sell around 10% of its shares. The company has faced delays in the past, but recent reports indicate a potential IPO valuation of up to
5 billion.
Preparations for IPO
According to the report, Reddit is expected to make its public filing in late February and aims to complete the IPO by the end of March. The company is looking to sell approximately 10% of its shares in the IPO and will determine the IPO valuation closer to the listing date. However, sources caution that the IPO plans could face potential delays, as has occurred in the past. Reddit has refrained from commenting on the matter.
Previous Attempts and Financial Details
This news follows a previous report by Bloomberg, which stated that Reddit had been in discussions with potential investors for an IPO. Founded in 2005, Reddit had confidentially submitted a draft registration statement with the Securities and Exchange Commission in December 2021, but those plans did not materialize. The company had raised $410 million in a Series F funding round last year, with plans to close out the round at $700 million. In January 2022, reports indicated that Reddit was working with Morgan Stanley and Goldman Sachs to go public, considering a valuation of up to $15 billion.
Challenges and Revenue Expectations
Despite its long-standing presence, Reddit has yet to turn a profit, as revealed by CEO and co-founder Steve Huffman last June. The company has delayed its IPO plans due to market uncertainties and its proximity to profitability. Recent reports also suggest that Reddit expects its ad revenue to surpass $800 million, marking a growth of over 20% by the end of 2023.
