Reddit, the prominent online platform, became a publicly traded company on the New York Stock Exchange.
Reddit, the prominent online platform, became a publicly traded company on the New York Stock Exchange.

Reddit Goes Public: A Milestone in Its 19-Year Journey

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Nearly two decades after its inception, Reddit, the popular online platform, debuted as a publicly traded firm on the New York Stock Exchange. The company’s mascot, Snoo, rang the opening bell to mark the occasion.

Reddit aimed to raise approximately $519.4 million by selling 15.3 million shares at $34 each. Stockholders planned to sell 6.7 million shares, collectively raising $228.6 million. The IPO price set Reddit’s valuation at just under $6.5 billion.

Additional Shares and Underwriters’ Option:

The sale’s underwriters also have the option to purchase 3.3 million shares at the IPO price within the next 30 days. This provision allows for potential additional capital influx if the stock performs well in the initial period after going public.

Reddit extended the opportunity to long-term users in good standing to purchase shares at the IPO pricing in the weeks before the public offering, reflecting a unique aspect of its transition to a publicly traded entity.

Reddit’s Journey to IPO:

Having been acquired by Conde Nast in 2006 and later spun out as an independent subsidiary in 2011, Reddit filed for its IPO in 2021. The company’s path to public comes after various ownership changes and strategic shifts.

Reddit has faced controversies throughout its history, including user protests over changes such as charging for API access. The platform’s S-1 filing acknowledges the importance of user engagement and highlights potential risks to its business if engagement declines.

Recent Deal and Scrutiny:

Reddit’s recent deal with Google, reportedly worth $60 million annually for AI model training, attracted scrutiny from the Federal Trade Commission. This deal underscores Reddit’s evolving partnerships and the regulatory attention it may attract as it navigates new ventures.

Joshua Skate

Joshua Skate is a prominent contributor at Insider Los Angeles, known for his vibrant storytelling and deep dive into the city's culture, trends, and hidden gems. His pieces bring to life the unique spirit and diversity of Los Angeles, making him a go-to source for all things LA.

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