Reddit Targets $6.4 Billion Valuation Before IPO

Reddit, a popular website, is aiming for a valuation of up to $6.4bn when it goes public next week. The social media company, which has never been profitable, will list shares on the New York Stock Exchange. A filing in the US disclosed that Reddit and its investors plan to sell 22 million shares for between $31 and $34 each. Despite this move, some users are concerned about potential changes to the platform. The company, founded nearly 20 years ago, is known for its user-generated content and community-driven approach. Reddit generates revenue primarily through advertising, but has also partnered with Google for AI training. The IPO will make some shares available to the public for the first time. Shareholders include media company Advance Magazine Publishers, Chinese tech firm Tencent, US investment firm Fidelity, and Sam Altman of OpenAI. Reddit’s unique user base and community-driven model differentiate it from other social media platforms like Facebook and TikTok. The power of Reddit communities was demonstrated during the Gamestop saga in 2021. Some users fear that the IPO could negatively impact the site’s user experience and focus on revenue over product improvement. Related topics include companies, social media, and Reddit.