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Reddit: The IPO will reportedly be announced at the end of February
Photo: Avishek Das/imago images/ZUMA Press
According to insiders, the Internet forum provider Reddit is aiming for its long-awaited initial public offering (IPO) in March.
There are now detailed plans for the move into the stock market, which the company had already considered three years ago, people familiar with the matter told Reuters.
According to insiders, Reddit plans to announce its IPO at the end of February and then start a roadshow with potential investors.
The move to the trading floor should take place by the end of March.
It would be the first IPO by a major social media company since Pinterest in 2019.
Founded in 2005 by Steve Huffman and Alexis Ohanian, the San Francisco-based company operates one of the most visited websites in the world.
In 2021 it was valued at ten billion dollars in a financing round.
Reddit is now aiming to sell around ten percent of its shares as part of the stock offering, the insiders added.
Reddit itself did not want to comment on the topic.
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The platform makes most of its revenue through advertising, but it also offers premium access for $5.99 per month.
In the advertising market, the company competes with, among others, TikTok and Facebook parent company Meta.
Last year, Reddit angered many of its users by announcing that it would also charge fees for access to its interface in the future.
AI companies use these to obtain training data from Reddit's many sub-forums, but providers of unofficial Reddit apps also need this access.
Reddit had not yet made a profit, Huffman said last June.
According to a media report, the company expected just over $800 million in advertising revenue for 2023, which would be an increase of more than 20 percent.
pbe/Reuters