ipo_page_title
get_ready_to_trade_itReddit Inc.
instrument_page_subtitle
instrument_page_trade_online_at
general_info_on Reddit
about_the_company
name
industry
Social Media/Advertising
employees
2,013
founding_year
2005
ticker
RDDT
filing_information
ipo_file_date
Feb. 22nd, 2024
nr_of_shares
1.3 million shares
price
est. at $31-$34
exchange
NYSE
bookrunners
Morgan Stanley, Goldman Sachs, J.P. Morgan
About Reddit
Reddit is an American-based user-generated social forum, news, and discussion website popular worldwide. Ranked as the 18th most visited website globally, this IPO is making waves, potentially laying the groundwork for RDDT to follow in the footsteps of social media giant META.
Reddit grabbed investors' attention after traders on the subreddit r/WallStreetBets led to the historical rise of meme stocks like GameStop and AMC in early 2021.
Reddit IPO Figures & Valuation
Reddit’s main revenue source is from advertising, with 98% coming from ads in 2022 and 2023.
Reddit's funding rounds are proving strong for the company, with several rounds boosting its value exponentially. The company has raised $1.3 billion in funding over nine rounds. The latest funding was raised on August 12, 2021, from a Series F round of $410 million.
- 2022 Revenue – 668 million
- 2023 Revenue – 804 million up 21% YOY
According to inside sources, CNBC stated Reddit plans to price its IPO between $31-$34 per share with a valuation of up to $6.5 billion. Although there is not an exact valuation yet, previous estimates value the social media platform at $10 billion.
Reddit has hired Morgan Stanley, J.P. Morgan, and Goldman Sachs to guide the company through the process as its bookrunners.
First Chance to Moderators
In an unconventional twist, Reddit is giving its top users the chance to get in on this IPO early through a, “directed share program” as stated in the filing. Reddit users will be sorted into a six- tier system based on their ‘karma’ score or moderator actions.
Top-tier users will get a chance to purchase the IPO ahead of its debut as gratitude for being loyal and an active user. This shows that Reddit is committed to its users as much as they are to this growing social media platform.
Google Strikes a Deal with Reddit to Improve AI
Most recently, Google and Reddit came to an agreement where search giant Google uses Reddit’s data to train its AI model on human posts and interactions. This $60 million deal comes in the heat of AI and helps both companies, as Reddit gains access to AI models to improve its internal search and other features.
Driver Behind Open AI, Sam Altman has Significant Stake in Reddit
As Reddit nears its IPO, OpenAI's Chief Sam Altman is spotlighted as a crucial investor. Altman's strategic foresight to invest in Reddit since 2014 could yield a significant financial return. Holding an impactful 9.2% of voting power, Altman's investments, totaling at least $60 million, underscore his pivotal role and potential for considerable gains with Reddit's public offering, solidifying his influence within the platform.
More on Reddit
- Reddit has an average of 73.1 million daily active users.
- As of October 2023, Reddit is the 18th most-visited website in the world.
- Investors are eager as this is the first social media IPO in years, following Pinterest’s debut in 2019.
- Although sales are flat, Reddit is embracing the AI era, capitalizing with licensing deals to use their data and improve AI models (Google as of latest).
- Sam Altman really believes in Reddit since 2014 and is a major investor with over 9% voting rights.
Sources: Bloomberg, crunchbase.com, New York Times, CNBC, Reuters, Business Insider
summary
ticker
RDDT
price
est. at $31-$34
exchange
NYSE
bookrunners
Morgan Stanley, Goldman Sachs, J.P. Morgan
key_points
ipo_quick_overview Reddit ipoReddit
ipo_trading_online
sneak_peak Reddit ipo sneak_peak
see_why_traders_seek_and_cherich_ipos
status
ipo_status_available
ipo_date
21/3/2024
price
est. at $31-$34
previous_ipos
see_a_track_record_of_the_most_significant_ipos_of_the_past
most_aniticipated_ipos_of_2022
ipo_anticipated_subtitle