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name

Reddit

industry

Social Media/Advertising

employees

2,013

founding_year

2005

ticker

Reddit

filing_information

ipo_file_date

February 22, 2024

nr_of_shares

1.3 million shares

price

est. at $31-$34

exchange

New York Stock Exchange

bookrunners

Morgan Stanley, Goldman Sachs, J.P. Morgan

ipo_details

What is Reddit?

Reddit, a globally renowned American user-driven social platform, news hub, and forum, is creating buzz with its upcoming IPO. As the 18th most visited site worldwide, this move could set the stage for RDDT to follow in the success of social media titan META. Notably, Reddit gained popularity when users on the r/WallStreetBets subreddit sparked a surge of meme stocks like GameStop and AMC in early 2021.

Reddit positions itself as a user-generated content and community-driven social platform, with it being one of the few left that embrace community building and niches, or sub-reddits as they are known to be.

When is the Reddit IPO expected to launch?

Reddit filed on February 22nd, 2024, but this was a long-time coming as the company had this planned since 2023. The IPO is expected to make its debut on Thursday, March 21st. 

Reddit IPO Stats

Reddit primarily generates revenue from advertising, with ads accounting for 98% of its earnings in both 2022 and 2023.

The company has experienced robust funding rounds, amounting to $1.3 billion across nine rounds, including a Series F round of $410 million on August 12, 2021.

In 2022, Reddit reported revenues of $668 million, increasing by 21% year-over-year to $804 million in 2023.

Reports suggest Reddit aims to price its IPO between $31 and $34 per share, valuing the company at up to $6.5 billion, although earlier estimates valued it at $10 billion.

To navigate the IPO process, Reddit has enlisted the services of Morgan Stanley, J.P. Morgan, and Goldman Sachs as its bookrunners. 

 

Exclusive Opportunity for Moderators

In a unique move, Reddit is extending the opportunity for its top users to participate in its IPO early through a "directed share program," as outlined in the filing. Users on Reddit will be categorized into a six-tier system based on their karma score or moderator activity.

Users in the top tier will have the chance to purchase shares in the IPO before its public debut, serving as a token of appreciation for their loyalty and active engagement. This initiative underscores Reddit's dedication to its user base, highlighting the mutual commitment between the platform and its community.

 

Google Collaborates with Reddit to Enhance AI Capabilities

Additionally, in a recent development, Google and Reddit have entered into a partnership where     the tech giant utilizes Reddit's data to train its AI models on human posts and interactions. This $60 million agreement comes amid the growing prominence of AI and benefits both parties,     with Reddit gaining access 

 

Open AI’s, Sam Altman is a Key Stakeholder

Open AI's CEO, Sam Altman, stands to generate substantial wealth some analysts believe as Reddit prepares to go public. Altman's foresight in making strategic investments in the online discussion board company since 2014 is set to potentially pay off lucratively. With a significant     9.2% voting power stake ahead of Reddit's upcoming initial public offering, Altman's financial gains are poised to reach the millions. Notably, Altman's investments in Reddit shares total at least $60 million, further solidifying his control and influence over the online messaging board company. 

 

Key Points on Reddit

  • With an impressive daily user base of 73.1 million, Reddit maintains a significant online presence.
  • Ranked 18th globally, Reddit stands as one of the most visited websites as of October 2023.
  • Investors are keenly anticipating Reddit's IPO, marking the first social media debut since Pinterest in 2019.
  • Reddit is utilizing AI as a profit-making scheme with Google.
  • Sam Altman, CEO of Open AI, has a notable stake in Reddit.
  • This is the biggest social media IPO in years, and potentially the biggest IPO of 2024. 

 

For the latest scoop on Reddit or to stay updated throughout the IPO, get in touch with your Personal Account Representative. 

sources: Bloomberg, crunchbase.com, New York Times, CNBC, Reuters, Business Insider

key_points

ipo_quick_overview

Expected IPO Valuation

$6.5-10 billion

Daily Users

73.1 million

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Reddit

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Reddit

  • ipo_date 21/03/2024
  • ipo_price est. at $31-$34

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