Social media platform Reddit is reportedly planning to launch its initial public offering (IPO) in March, according to sources familiar with the matter. This move comes after years of anticipation and would mark the first major IPO by a social media company since Pinterest’s debut in 2019. However, Reddit will face significant competition from the likes of TikTok and Facebook for advertising dollars. The IPO would also test the willingness of Reddit users, many of whom have been involved in meme stock rallies in recent years. Reddit filed confidentially for its IPO in December 2021 and is expected to make its public filing in late February, with the IPO set to be completed by the end of March. The company is projected to generate over $800 million in advertising revenue in 2023, up more than 20% from the previous year. Reddit is seeking to sell around 10% of its shares in the IPO, and the valuation will be determined nearer to the time of listing. It should be noted that the IPO plans could be subject to changes and delays. Founded in 2005, Reddit is known for its niche discussion groups and user-voted content. The company generates its revenue through advertising and premium subscriptions. While it has not yet turned a profit, Reddit aims to achieve profitability before going public. The IPO market had been volatile in recent years, contributing to the company’s decision to delay its plans until market conditions improved. With the IPO, Reddit aims to enhance its financial prospects and capitalize on its growing advertising revenue.
Reddit Plans March IPO Amidst Growing Competition for Advertising Dollars
Date:
Updated: [falahcoin_post_modified_date]