Reddit Proceeds with Plans for Share Listing

Reddit, the popular online message board, has filed for an initial public offering (IPO) almost 20 years after its inception. The company submitted paperwork to US financial regulators on Thursday, although the exact amount it hopes to raise through listing on the New York Stock Exchange remains undisclosed. The filing sheds light on Reddit’s operations, revealing its struggles to monetize its online popularity. The platform, known for its memes and candid discussions, attracts over 76 million daily visitors and was valued at $10 billion in a 2021 fundraising round. Despite recording losses each year since its inception, Reddit reported $804 million in revenue in 2023, primarily from advertising. CEO Steve Huffman expressed optimism about future revenue streams, including commerce and content licensing. Reddit’s IPO would be the first by a social media company since Pinterest in 2019, reflecting a bullish market outlook driven by artificial intelligence advancements. The company aims to involve users in its public offering by reserving shares for active contributors. While some Reddit users have expressed skepticism about the IPO, others are intrigued by the potential opportunity. Founded in 2005 by Huffman and Alexis Ohanian, Reddit has garnered support from notable investors like Andreessen Horowitz, Tencent Holdings, and Snoop Dogg.