According to a recent report from Reuters, Reddit is gearing up to launch its initial public offering (IPO) in March. This news comes after more than three years of speculation and anticipation since the San Francisco-based social media platform first expressed interest in going public.
The planned IPO involves selling around 10% of Reddit’s shares, with the company yet to determine its valuation for the public listing, which will likely be decided closer to the time of the IPO. However, sources have cautioned that there is a possibility of delays, as has happened in the past.
Reddit declined to comment on the matter.
This announcement follows a report from Bloomberg in November, which revealed that Reddit was in discussions with potential investors for its IPO. The company, founded in 2005, had confidentially submitted a draft registration statement with the Securities and Exchange Commission in December of 2021, but those plans did not come to fruition. This move took place just months after Reddit had secured a $410 million Series F funding round led by Fidelity, giving it a valuation of $10 billion. At the time, it aimed to close the round at $700 million.
In January of 2022, it was reported that Reddit had enlisted the help of Morgan Stanley and Goldman Sachs to assist with the IPO and was considering a valuation of up to $15 billion.
According to CEO and co-founder Steve Huffman, Reddit has yet to turn a profit, as revealed in June of last year. The company has been waiting for closer profitability before launching its IPO and has also been impacted by the unpredictable IPO market in the last two years, as noted by Reuters.
The Information had previously reported that Reddit was projected to see a significant increase in ad revenue, reaching just over $800 million by the end of 2023.