Reddit is going public (business-wise)

[Free]

Reddit files to take the company public

The company was valued at $10 billion in August

www.theverge.com

Reddit announced late Wednesday that it has started the process of taking the company public, by filing a confidential S-1 with the Securities and Exchange Commission.

The number of shares to be offered, and the price range for the proposed offering haven’t been determined yet, the company said, adding that it was in a quiet period and could not provide further details for regulatory reasons, which is standard practice.

The company has been rumored to be considering an IPO for some time, and in August announced it had raised a $700 million round of funding at a valuation of more than $10 billion.

 

[Sean Gorham]

If you thought Reddit was problematic up to now, just wait until they have to suck up to all the shareholders and the pursuit of ever-increasing profits...

 

[Dakota Tebaldi]

I dunno.....there's a very small chance shareholders might be able to force Reddit to stop Switzerlanding over COVID misinformation on its platform.

 

[bubblesort]

I've been lurking in /r/WallStBets, with a big tub of popcorn. I know they probably won't do anything, but it would be hilarious if they bought a controlling interest and took over the company. They would probably appoint Martin Shikreli as CEO. On the other end of the spectrum, it would be funny if they somehow ran some kind of naked short ladder attack, to run reddit into the ground when the IPO hits. Neither of those possibilities would totally shock me, because nothing makes sense any more.

They, themselves are having these debates.

Here's a thread where a redditor tries to pitch buying Reddit. (14300 karma, 6 hours ago)

Here's a thread where a redditor tries to pitch shorting Reddit. (4005 karma, 18 hours ago)

Judging by karma alone, assuming no botting (which is a leap), it looks like, if they do anything, they will try to buy Reddit.

 

[Khamon]

Surely a controlling interest won’t be offered in the IPO. But I do feel like many people will lose many dollars.

 

[Essence Lumin]

I don't see the sense in it. How are they supposed to grow and make money? Except for shoving a ton of ads at us I suppose.

 

[Khamon]

There is no actual business sense, or growth plan, existing in the IPO. It's a shell game that will begin by pouring millions into a few controlling pockets, continue by providing a roller coaster ride for people trying to make a buck but losing badly, and end with a few people owning fairly priced stocked that'll never go anywhere or pay any dividends. A few lucky winners will manage to buy very low, and sell very high, but most will totally lose their quite obviously way too risky investment.

 

[Free]

Reddit faces new reality after cashing in on its IPO

Reddit must now answer to its shareholders as well as its vocal users.

arstechnica.com

 

[Essence Lumin]

Reddit faces new reality after cashing in on its IPO

Reddit must now answer to its shareholders as well as its vocal users.

arstechnica.com

It's weird to me how much money they made out of it. Reddit has never made a profit so advertising doesn't seem to be a great money maker for them. Then there is AI but it is hard to imagine it is worth that much. Maybe though.

 

[Essence Lumin]

A long well written article from Wired about Reddit's history and its IPO. If you get a message blocking you from seeing the article and are on a PC, switching to Incognito mode will work.

Can Reddit Survive Its Own IPO?

An army of more than 60,000 unpaid moderators has unprecedented power over Reddit. The company’s future hinges on whether they can coexist with Wall Street’s expectations.

www.wired.com