Reddit, the famous social media site, has officially revealed that after months of speculation it will file for an initial public offering (IPO).
On Wednesday, the famous social site Reddit revealed that it has begun the procedure of making the company public. The company informed the Securities and Exchange Commission (SEC) of its plan to go public through a confidential S-1 filing.
According to SEC regulations, they cannot give any data regarding shares or prices until after a slight period has passed to secure trade secrets from being exposed before an IPO date is decided. The SEC filing verified long-running suspicions about Reddit's plans to go public.
Reddit secured $700 million in new funding in August, valuing the firm at more than $10 billion. According to a recent report, Reddit made $100 million in ad revenue in the second quarter of 2021, indicating a roughly 200% rise over the previous year.
In a filing with the US Securities and Exchange Commission, Reddit noted, "The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions".
Reddit is a competitor to ad-supported social media platforms like Meta and Twitter. Huffman states that the firm has evolved in the shade of Facebook, now Meta, and Google, and that every dollar earned is a challenge. Reddit, on the other side, has already formed its cryptocurrency in the sort of RCPs, or Reddit Community Points.
Reddit has around 52 million regular users and over 100,000 active subreddits as of August. Reddit is a site where seasoned traders gather to share their knowledge, and also a major gathering site for the infamous meme stock r/Wallstreetbets, which has had a significant impact on stock markets and crypto markets this year through retail trading and pumping approaches. Due to the group's prominence, r/SatoshiStreetB, which now has 509,000 members, was formed.
