Reddit looking to launch IPO in March
Reddit is planning to launch its initial public offering (IPO) in March, according to reports from Reuters.
The social platform first filed for its IPO back in December, 2021, and was valued at US$10 billion (A$15.2b) during a funding round earlier that same year.
According to Reuters, who quote “people familiar with the matter”, Reddit is planning to float around 10% of its shares. It will make its public filing in late February, with a view to completing the IPO by the end of March.
Last June, during an AMA, CEO Steve Huffman was accused of being increasingly profit-driven and less focused on community engagement, after which he revealed the company is yet to turn a profit.
“We’ll continue to be profit-driven until profits arrive,” Huffman responded. “Unlike some of the 3P apps, we are not profitable.”
Last year the company laid off 90 employees and slowed its hiring, in a bid to becoming profitable.
The company expects to have netted over US$800 million (A$1.2b) in advertising revenue for 2023, according to The Information, up 20% from 2022, but well short of the company’s US$1 billion target.
Mumbrella has reached out to Reddit for a comment, and will update the story accordingly.
Linkedin
Have your say