Reddit Plans IPO Allowing Longtime Users to Buy Shares

Reddit has officially announced its plan for an Initial Public Offering (IPO) on the New York Stock Exchange, ending years of market rumors. The company intends to adopt RDDT as its stock ticker symbol and has expressed plans to open opportunities for some of its long-time users to buy shares.

In the firm’s S-1 filing with the SEC, Steve Huffman, CEO of Reddit, shared a supporting note. He highlighted that numerous long-standing users already take great pride in belonging to their online communities. Consequently, the company aims to translate this sense of belonging into actual ownership. Huffman wrote that the company looks forward to inviting its contributing users and moderators to become shareholders through the IPO, along with its investors.

However, the company kept the number of eligible users undisclosed. It stated that the selection of eligible users would rest on their karma scores, and the measurement of moderator contributions would be based on membership and moderator activities.

The S-1 filing also shed light on some new information concerning Reddit’s internal operations. According to the file, the company received 500 million visits in December and averaged over 73 million “daily active unique” visits. Despite its impressive revenue of $804 million in 2023, Reddit has not yet turned a profit. The document further indicates that the company is considering partnerships with AI companies to license its content, which is part of its future revenue expansion plan.

Earlier on the same day, Reddit struck a partnership deal with Google, estimated to be worth roughly $60 million per year. The company stated, “We expect our expanding platform data to play a crucial part in teaching leading large language models (“LLMs”) and help provide an extra revenue source for Reddit.”