Thursday, January 18, 2024

Reddit Shakes the Market: Plans Major Stock Exchange Debut in March

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John Wilson

2 min read·296 Reads
Reddit Shakes the Market: Plans Major Stock Exchange Debut in March

In what's shaping up to be a major event in the tech world, the American social media platform Reddit has reportedly prepared "detailed plans" for an IPO in March, according to sources cited by Reuters. This highly anticipated move, which the company has been aiming for over the past three years, is expected to be officially announced by the end of February.

A Landmark IPO Since Pinterest

This would mark the first IPO of a major social media company since Pinterest went public in 2019. The timing is crucial, as companies like Reddit face intense competition from platforms like TikTok and Facebook, especially in the realm of advertising revenue.

Reddit's Valuation and Share Sale Plans

Based in San Francisco, Reddit was valued at around 10 billion dollars (approximately 9.2 billion euros at current rates) during a funding round in 2021. Sources say Reddit plans to sell about 10 percent of its shares during its stock market debut. A spokesperson for Reddit declined to comment on these reports.

Reddit-Rally: A Game Changer

Reddit has been in the spotlight in recent years due to the so-called Reddit-rally. This phenomenon saw groups of individual investors on Reddit encouraging each other to invest in seemingly unattractive stocks. As a result, stocks like GameStop soared in value, countering investment funds that were betting on their decline. This movement was widely seen as a pushback against traditional investment strategies.

Controversy and Fines

In a controversial turn of events last year, Reddit was fined by Russia for failing to remove content containing "false information" about the war in Ukraine. As reported by the state news agency, Reddit had to pay a fine of 2 million rubles, around 18,500 euros, to the Russian government. This incident added to the platform's growing visibility and impact on global socio-political issues.

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