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Reddit plans to target a valuation of up to $6.5 billion in its upcoming initial public offering (IPO), significantly lower than its previous valuation of $10 billion in 2021.
According to sources familiar with the matter, the company is considering a price range of $31 to $34 per share for its IPO.
A mix of New and Existing Shares Offered:
Shares offered in the IPO will include new shares issued by Reddit and existing shares held by investors and employees.
Reddit disclosed a narrowed net loss of $90.8 million and approximately 21% revenue growth in 2023, showcasing its financial performance ahead of the IPO.
Also Read: Nissan in Advanced Talks to Invest in Electric Vehicle Maker Fisker
IPO Filing and Historical Context:
The IPO filing, made public last week, marks a significant milestone for Reddit, launched almost two decades ago. It represents a major test for the platform as it aims to demonstrate its commercial viability compared to social media giants like Facebook and Twitter.
Potential Implications for Reddit’s Future:
The IPO will serve as a crucial juncture for Reddit‘s future trajectory as it seeks to navigate its path towards sustainable growth and profitability in the competitive digital landscape.
Industry analysts and investors will closely monitor Reddit’s IPO performance to gauge market sentiment and assess its potential impact on the broader social media landscape.
