The social media company Reddit announced that it has secretly applied for an initial public offering (IPO). The document was submitted to the US Securities and Exchange Commission on Wednesday.
Reddit did not disclose the number of shares to be offered for sale or the price range of the IPO in its statement. It has not disclosed the valuation it will seek in the IPO. However, Reuters reported in September that Reddit’s valuation will exceed $15 billion.
As of October last year, Reddit had approximately 52 million daily active users and more than 100,000 communities, or “sub-Reddit.”
On one such sub-Reddit, WallStreetBets, users almost immediately began to discuss the company’s move to introduce an IPO. Some users worry that the stock listing marks the beginning of the end of Reddit’s freewheeling culture, while others see opportunities for more fun-and potential profits. Surveillance is clearly a problem. “KetoIsRacist” predicted “large-scale censorship.” At the same time, “wearethesamewave” is convinced that the company has added advertising to show that change is coming.
Reddit was founded in 2005 and has become one of the most influential social media companies in the world over the years. The site provides message boards on various topics.
Since its inception, Reddit has experienced a roller coaster. It was founded by Steve Huffman and Alexis Ohanian, but was acquired by Condé Nast in 2006. This changed the structure of the company to differentiate it from other contemporary social media such as Twitter and Facebook.
Hoffman returned to the helm in 2015, but before Reddit experienced some other CEOs.
Complete News Source : Hindustan Times
