Reddit is in talks with potential investors for an initial public offering, as investors prepare for the reopening of the market for new listings.
The social media company is considering an IPO as early as the first quarter of 2024, reports Bloomberg. Reddit is reportedly working with Morgan Stanley and Goldman Sachs on the listing. The company is considering a valuation of $15 billion, according to the report.
Reddit confidentially submitted a draft registration statement with theSecurities and Exchange Commission to go public in December 2021, but those plans did not materialise. This move took place just months after Reddit had raised $410 million in financing led by Fidelity, which valued the company at $10 billion. In March 2021, Reddit also hired its first-ever CFO, Drew Vollero, who previously worked on Snap’s IPO.
At the time, it planned to close out the round, a Series F, at $700 million. In January 2022, Reddit even went as far as to tap Morgan Stanley and Goldman Sachs to work on the listing, with a potential valuation of $15 billion. However, it is unclear at what valuation it will go public next year.
The company had also not determined the number of shares to offer or the price range for its initial public offering when it filed the draft registration in 2021.
The CEO of Reddit, Steve Huffman, told The New York Times in 2021 that Fidelity’s investment would provide the company with more time to decide when and how to go public.
Earlier this year, in June, Fidelity reduced the value of its equity stake in Reddit by 41% since its investment in 2021. The Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, down 41.1% since August 2021.
Reddit has received funding of over $1 billion to date, with Sequoia Capital and Andreessen Horowitz being among its investors.
The social media company is considering an IPO as early as the first quarter of 2024, reports Bloomberg. Reddit is reportedly working with Morgan Stanley and Goldman Sachs on the listing. The company is considering a valuation of $15 billion, according to the report.
Reddit confidentially submitted a draft registration statement with theSecurities and Exchange Commission to go public in December 2021, but those plans did not materialise. This move took place just months after Reddit had raised $410 million in financing led by Fidelity, which valued the company at $10 billion. In March 2021, Reddit also hired its first-ever CFO, Drew Vollero, who previously worked on Snap’s IPO.
At the time, it planned to close out the round, a Series F, at $700 million. In January 2022, Reddit even went as far as to tap Morgan Stanley and Goldman Sachs to work on the listing, with a potential valuation of $15 billion. However, it is unclear at what valuation it will go public next year.
The company had also not determined the number of shares to offer or the price range for its initial public offering when it filed the draft registration in 2021.
The CEO of Reddit, Steve Huffman, told The New York Times in 2021 that Fidelity’s investment would provide the company with more time to decide when and how to go public.
Earlier this year, in June, Fidelity reduced the value of its equity stake in Reddit by 41% since its investment in 2021. The Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, down 41.1% since August 2021.
Reddit has received funding of over $1 billion to date, with Sequoia Capital and Andreessen Horowitz being among its investors.