Rumors are circulating that Reddit, the popular social media platform, is once again considering an Initial Public Offering (IPO). Reports suggest that Reddit is in talks with potential investors for an IPO and could go public as early as the first quarter of 2024.
Reddit had previously flirted with the idea of going public. In December 2021, the company confidentially submitted a draft registration statement with the Securities and Exchange Commission (SEC) for an IPO.
However, these plans did not materialize. At that time, Reddit had just raised $410 million in financing led by Fidelity, valuing the company at $10 billion. The company was considering a valuation of as much as $15 billion for the IPO.
Reddit has reportedly been working with Morgan Stanley and Goldman Sachs on the listing However, the company spokesperson has declined to comment on these reports, citing a “quiet period”.
The timing of these rumors coincides with Reddit’s recent rebranding, which included a refresh of its iconic logo and mascot, Snoo. This has added to the speculation about the company’s potential IPO.
It’s important to note that these are still rumors and no official announcement has been made by the comapnay. The company’s plans for an IPO could still change, especially considering the recent volatility in the IPO market.
What is the current valuation of Reddit?
According to recent reports, Fidelity, the lead investor in Reddit’s most recent funding round in 2021, has slashed the estimated worth of its equity stake in the popular social media platform by 41% since the investment.
Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, 2023, down 41.1% cumulatively since August 2021 when the asset manager spent $28.2 million to acquire the Reddit shares.
Reddit was valued at $10 billion when it attracted funds in August 2021. However, the company is reportedly in talks with potential investors for an initial public offering (IPO) and was reported last year to have been considering a valuation of up to $15 billion.
The current valuation of Reddit is unclear, but Fidelity’s recent valuation cut suggests that it may be lower than its previous valuation.
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