(CTN News) – Social media giant Reddit is reportedly preparing for its initial public offering (IPO) in March, aby the investment community.
detailed plans have been drawn up for the a significant milestone for the platform that has been seeking a public listing for more than three years.
the plans proceed as anticipated, Reddit’s IPO will be the first for a large social media company since Pinterest’s IPO in 2012.
With the company’s entry into the public market, social media platforms face intense competition for advertising dollars from companies such as TikTok and Meta (formerly Facebook).
Thanks to the platform, which is known for its diverse user base and influential community, companies like AMC Entertainment Holdings and GameStop have experienced “meme” stock rallies.
A close eye will be kept on how the Reddit community reacts to the company’s stock market debut.
made confidentially in December 2021 and are scheduled to be made public in late February 2022.
IPO completion is expected at the end of March, followingearly March. Founded in San Francisco in 2021 and valued at around $10 billion, the company intends to sell approximately 10% of its shares in the IPO. We will make a final decision on the IPO valuation closer to the listing date.
It isto note that sources caution that these plans can change, as they have in the emphasize that the information is based on confidential discussions.
Reddit was founded in 2005 by Steve Huffman and Alexis Ohanian and is known for its unique discussion groups and ranking system based on user ratings.
The company offers a $5.99 monthly subscription service that generates revenue mostly through advertising. Due to investments in the platform anduser engagement with advertisements, Reddit has not yet turned a profit despite its popularity.