Reddit, an American social news aggregation, web content rating, and discussion website, has tapped two multinational investment bank and financial services companies, Morgan Stanley and Goldman Sachs Group for its initial public offering (IPO).
According to sources, Reddit could be valued at as much as $15 billion in an IPO. Earlier in December 2021, the company filed for an IPO to raise $700 million, led by Fidelity Management and Research Company, including other existing investors like Sequoia Capital, Andreessen Horowitz, Coatue Management and Tencent Holdings, putting Reddit at a $10 billion valuation.
Recently, Reddit announced that it had confidentially submitted listing documents to the United States Securities and Exchange Committee (SEC) for an IPO.
Reddit saw a surge of interest in 2021 after a forum on the site, WallStreetBets, jolted the stock market. The meme stock trading frenzy, driven largely by posts on the site, fueled the prices of American video-game company GameStop, the largest movie theater chain in the world, AMC Entertainment Holdings.
Reddit, headquartered in San Francisco, was founded in 2005 by Mr. SteveHuffman and Mr. Alexis Ohanian. It has more than 50 million daily active users and over 100,000 communities.
In Q2 2021, Reddit generated its first $100 million advertising revenue, representing a 192 percent increase compared to the same period in 2020. The company is also investing in existing products and diversifying the Reddit experience to include new ways for communities to connect through video and audio.
In August 2021, Reddit launched a TikTok-alike video feed for its iOS mobile app that would make it easier to watch the social network`s content in just one place.
