Reddit Aims for $6.4 Billion Valuation in Long-Awaited IPO
Following its inception in 2005, Reddit swiftly solidified its position as a cornerstone of social media culture. Its instantly recognizable logo, featuring an alien set against an orange backdrop, has become one of the internet’s most iconic symbols.
Boasting over 100,000 online forums, commonly referred to as “subreddits,” the platform facilitates discussions spanning a wide spectrum of topics, ranging from the trivial to the profound, as highlighted by co-founder Steve Huffman. Notably, Huffman himself sought support from one of these subreddits to overcome his struggles with alcohol addiction, as detailed in his letter. Even former U.S. President Barack Obama engaged Reddit users in an “AMA” (“ask me anything”) session in 2012.
Reddit’s influential communities gained widespread recognition during the “meme-stock” frenzy of 2021. Retail investors on the platform’s “wallstreetbets” forum collaborated to purchase shares of heavily shorted companies like GameStop, dealing significant blows to hedge funds and elevating retail traders to a formidable position. This remarkable event was later depicted in a 2023 film featuring Seth Rogen.
In a move to engage its retail user base, Reddit has set aside eight percent of the total shares for eligible platform users and moderators, select board members, and the friends and family of its employees and directors.