Reddit to launch IPO in March: Report

Source: Cointelegraph

Social media giant Reddit is reportedly looking to launch its initial public offering (IPO) in March, according to a Reuters report.

The San Francisco-based firm will reportedly sell about 10% of its shares in the IPO, with its valuation to be revealed around the time of listing. The social media giant was valued at $10 billion after its funding round in 2021.

If Reddit plans to go public in March, it will be the first major social media IPO since Pinterest’s in 2019. Founded in 2005, Reddit became a popular online forum for people to discuss and share their experiences via various subreddits.

The platform is also known for keeping up with new technology trends, from Web3 to artificial intelligence.

Reddit was among the first social media platforms to integrate crypto tipping features, and it introduced a nonfungible token program in 2022. The firm faced backlash when it announced it would charge companies for access to its application programming interface (API), which technology companies use to train large language models used in artificial intelligence. 

According to the sources cited by Reuters, Reddit confidentially filed for its IPO in December 2021 and plans to make its public filing in late February, followed by a launch in early March. The social media firm reportedly delayed its plan to go public until it turned profitable.

With most of its revenue coming from advertising and premium subscription plans, the social media giant expected to generate about $800 million in advertising revenue in 2023, according to Reuters.

In its report, Reuters cautioned that the timeline of the IPO might get pushed back, as happened previously, citing sources familiar with the matter.