Daisy Watts 
Jan 18, 2024
Reddit, a popular social media platform, is set to go public with its initial public offering (IPO) in March. This will mark the first IPO of a significant social media company since Pinterest's introduction in 2019.
Numerous investors participating on the platform have contributed to numerous "meme" stock surges over the past three years, including retailer GameStop and movie operator AMC Entertainment Holdings.
Reddit, which filed for its IPO confidentially in December 2021, is preparing to publicly file in late February, initiate its roadshow in early March, and finalise the IPO by the end of March, according to sources familiar with the matter cited by Reuters.
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The company, based in San Francisco and valued at approximately $10 billion in a 2021 funding round, is looking to offer around 10% of its shares in the initial public offering. The sources noted that Reddit's plans for an IPO might be delayed, as has happened in the past.
Established in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit gained popularity for its specialised discussion communities and its users' voting system for content posted by other members.
The company primarily earns revenue through advertising and also offers premium access for $5.99 per month. It attributed its losses to investing in the platform and lower user engagement with advertising compared to other social media platforms.
Last year, Reddit announced that it would start charging companies for access to its application programming interface (API), which caused dissatisfaction among some users who depend on third-party apps to use Reddit.
