Reddit to pursue March IPO after three years mulling it – reports
Reddit has reportedly drafted detailed plans for a long-awaited initial public offering (IPO) scheduled to close by the end of March.
The social media giant, which has been contemplating an IPO for over three years, is poised to unveil its public filing late in February, according to Reuters.
Following this, the company is set to embark on its roadshow in early March. It will culminate in the IPO’s completion at the end of that month, the report said, citing people familiar with the matter.
The IPO would be the first by a major social media company since Pinterest’s public debut back in 2019.
Reddit was valued at around $10bn (£7.8bn) at its latest funding round in 2021, and is seeking to sell around 10 per cent of its shares. The sources cautioned that its IPO plans could be delayed again.
Market volatility has hindered its IPO ambitions over the past two years and Reddit has been waiting until it approaches profitability.
The platform generates revenue primarily through advertising and offering premium access at $5.99 per month but it has yet to turn a profit – something that chief executive Steve Huffman acknowledged in a June 2023 blog post.
Reddit has previously blamed financial losses on its own investments to improve the platform and users interacting less with ads compared to other social media sites.
Self-styled ‘front page of the internet’, Reddit gained attention among investors back in 2021 when day traders on its forum orchestrated a huge rally in shorted stocks such as GameStop and AMC.
Reddit did not immediately respond to a request for comment.