It wasn’t too long ago that users of the Reddit platform used their sheer bulk to manipulate stock prices. Now the operator of your favorite network wants to take the step on the stock exchange and is making the appropriate preparations.
Reddit is one of the few major social platforms that are currently entirely privately owned. But that is about to change – on the one hand, of course, to bring capital into the company for further development, but on the other hand, of course, to gild the previous growth for the operators. Therefore, according to reports from various US media, the owners have filed a confidential application with the US Securities and Exchange Commission to initiate the first steps towards an IPO.
A few months ago, Reddit carried out a private financing round. The company was valued at around $ 10 billion. Since then, however, the platform has continued to climb steeply and it is expected that Reddit should aim for a valuation of around $ 15 billion by the time it goes public.
The site was founded in 2005, so it is no longer necessarily one of the typical tech startups. After all, it is almost as old as Facebook. However, forum communities on certain topics are more likely to be found on Reddit than social networks of people who are otherwise related to one another. That didn’t have the potential to bring extremely strong growth.
It is currently unclear when the IPO could take place. After all, the SEC is likely to request extensive documents in advance and the reports submitted often have to be corrected several times. Including the preliminary processes with deadlines, it will probably be months before the shares go on sale.
Web Desk is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news and served by Research Snipers Staff and editors.