The Wall Street Journal reported on Reddit’s IPO plans, estimating the company’s valuation at around $6.5 billion. They are preparing to offer shares at a price range of $31-34 per share. However, the $6.5 billion valuation is a decrease from Reddit’s previous valuation of up to $10 billion following its latest funding round in August 2021. This decrease is due to Reddit’s lack of profitability. Nonetheless, this valuation may change after presenting the information to institutional investors.
Reddit’s IPO is highly anticipated as it is one of the largest IPOs of the year. It will be the first technology company IPO of the year and also one of the few social media companies to go public in recent years. Reddit has announced that they will be selling IPO shares to platform users or “Redditors,” which is a unique approach not commonly seen in IPOs in America.
Source: The Wall Street Journal
TLDR: Reddit’s IPO valuation is estimated at $6.5 billion, a decrease from its previous valuation of up to $10 billion, as the platform is yet to be profitable. The company plans to offer IPO shares to its users, a rare approach in American IPOs.
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