Reddit reportedly hiring advisers for upcoming U.S. IPO
Reuters is reporting that Reddit has begun seeking out advisers for their IPO.
Reddit is one of the most important websites on the entire Internet, but public investors have not been able to get a piece of the company up to this point. That may be changing in the near future as Reddit plans for its initial public offering (IPO). The company is reportedly seeking out advisers to hire for the upcoming IPO.
In a report filed by Reuters, Reddit's desire to take their stock public appear to be heating up. The company was most recently valued at $10 billion in a private round of fundraising that took place last month, but Reddit is reportedly seeking a valuation near $15 billion when the stock hits public markets. Leading up to that day, Reddit is seeking to hire lawyers and investment banking professionals to start the work behind an IPO.
When the Reddit IPO will take place is still very much up in the air and will depend on market conditions. This is also true of the size of the IPO, as Reddit doesn't want to go public in a less bullish market. The company boasts 52 million daily active users and features over 100,000 subreddits. One such popular subreddit, r/WallStreetBets, gained tremendous popularity earlier in 2021 as meme stock GameStop took over the news cycle.
Reddit was founded in 2005 and makes most of their money through advertising revenue. Second quarter ad revenue topped $100 million, up almost 200% from Q2 2020. In a world where Facebook is being valued at $1 trillion, Reddit trading for $10-15 billion doesn't seem that crazy, but Facebook reports over 2 billion users, which is a lot higher than Reddit's current user base.
Do you use Reddit? Would you invest in the company? Are upvotes dumb? Let us know your opinion in the comments section below. We really want to hear your opinion.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
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