Reddit files confidentiality to go publics
Reddit files confidentiality to go publics
After raising a substantial $410 million in funding led by Fidelity in August, the company was valued at $10 billion, according to Forbes. It intended to close the round, which was dubbed a Series F at the time, for a total of $700 million in cash.
CFO Steve Huffman stated in an interview with the New York Times that Fidelity's investment would provide the company with additional time to decide when and how to go public.
To become public, the company announced Wednesday evening that it had submitted a confidential registration statement to the Securities and Exchange Commission in order to go public. The site has been online for 16 years.
Neither the number of shares to be offered nor the price range for the initial public offering (IPO) have been determined by Reddit.
There were hints that the well-capitalized company was preparing to go public through an initial public offering (IPO). Drew Vollero, who previously worked on Snap's initial public offering, was hired as the company's first chief financial officer (CFO) in March.
As of this writing, Reddit has raised $1.3 billion in funding, according to publicly available information.
In recent years, the content aggregator has faced an increasing number of challenges, including presenting itself as a community hub while simultaneously attempting to police hate speech. Earlier this year, a subreddit played a key role in the massive stock market rallies experienced by companies such as GameStop and AMC Network.
Tencent's lead role in Reddit's $300 million Series D funding in 2019 stoked fears that the online community site would be subjected to government censorship and surveillance measures. My colleague Jon, who was present at the time, refuted the rumor.
The popularity of Reddit has contributed to the financial success of the company. In the second quarter, Reddit's advertising revenue surpassed $100 million. The site had 50 million daily visitors and 100,000 active subreddits at the time of the August count, according to the data.
