Reddit intents to launch IPO in March

A fresh report from Reuters claims that Reddit is getting ready to make its first public offering (IPO) in March. According to the report, the San Francisco-based social media network has been considering an IPO for more than three years before this move. To complete the IPO by the end of March, it intends to file for public use in late February.

At a later date, the business will determine which IPO valuation to pursue. It plans to sell around 10% of its shares in the IPO. Reddit's ambitions for an IPO, however, could be postponed, as has already occurred, according to Reuters sources. 

The announcement was made over two months after Bloomberg revealed Reddit was in discussions with possible investors regarding an IPO. It intended to go public in December 2021. However, such intentions were never realized. Shortly after raising $410 million in a Series F investment round headed by Fidelity, which valued Reddit at $10 billion, the company made its move. It intended to end the round at $700 million at the time. 

In January 2022, the network was reportedly in talks to go public with Morgan Stanley and Goldman Sachs, with a potential $15 billion valuation.

Steve Huffman, the CEO and co-founder of Reddit, disclosed last June that the business had not yet turned a profit. Reddit decided to wait to go public until it was more financially stable. According to the report, the uncertainty surrounding the IPO market during the previous two years has also caused its IPO plans to be postponed.

A few weeks ago, The Information revealed that the network anticipated ending 2023 with a little over $800 million in ad revenue—a gain of more than 20%.