The front page of the Internet is finally ready to go public
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Reddit, the social media platform that calls itself “the front page of the Internet,” has finally gone public.
According to Reuters, an IPO is scheduled for March, a move the company has been considering for more than three years. This represents a significant milestone, as it is the first large social media IPO since Pinterest in 2019. Its success will depend on market valuation and the engagement and support of the user community.
Reddit caught the attention of the world press when in 2021 the Wallstreetbets subgroup left its mark on the prices of some “meme stocks”, in particular AMC and GameStop. Hollywood made a movie about her called “Dumb Money.”
The IPO is not only a test of Reddit's market capitalization, but also a measure of user and investor confidence in the social media platforms. Its success or failure could have major implications for future technology IPOs and the advertising market.
Founded in 2005, Reddit has yet to turn a profit, but it's worth an estimated $10 billion.
The IPO will involve about 10% of Reddit's shares, but despite its standardization as part of internet culture, its success on the open market is not a given. Reddit competes for advertising dollars from platforms like TikTok and Facebook.
News wires
