Source: Financial News Agency Author: Liu Rui
① According to a source familiar with the matter, Reddit Inc.'s IPO valuation can reach up to 6.5 billion US dollars. Compared to 2022, when “retail investors emptied Wall Street,” the company's valuation has shrunk drastically from about $15 billion at the time; ② It is worth mentioning that OpenAI CEO Sam Altman (Sam Altman) and Tencent are also major shareholders of the company.
Last week, Reddit, an online community platform known as the “US version of Tieba,” officially submitted a prospectus to the US Securities Regulatory Commission.
According to a source familiar with the matter, Reddit Inc.'s initial public offering (IPO) valuation can reach up to $6.5 billion. Compared to 2022, when “retail investors emptied Wall Street,” the company's valuation has shrunk drastically from about $15 billion at the time.
The Reddit listing is valued at around $6.5 billion
According to the prospectus, the company plans to list on the New York Stock Exchange under the stock code RDDT. Sources revealed that Reddit plans to set an offering price between $31 and $34 per share when it first issues shares.
According to this price range, Reddit's overall valuation after complete dilution is around $6 billion to $6.5 billion. However, details such as the scale and timing of subsequent IPOs are still subject to change.
According to Reddit's filing with the US Securities and Exchange Commission, the offering was led by Morgan Stanley, Goldman Sachs Group, J.P. Morgan Chase, and Bank of America.
In January of this year, it was reported that Reddit was weighing feedback from an early meeting with potential IPO investors, who believed Reddit should consider a valuation of at least $5 billion. People familiar with the matter revealed that the company's goal is to reach an IPO valuation of around US$4 to 60 billion.
Are Tencent and OpenAI CEOs major shareholders?
Reddit was founded in 2006 and now has an average of 73 million daily visits. According to the prospectus, in 2023, Reddit's revenue reached US$804 million, an increase of 21% over the previous year. Compared with the net loss of US$159 million in 2022, the company's net loss narrowed last year, but it still exceeded 90 million US dollars.
At the beginning of 2021, Reddit was once famous for “retail investors emptying Wall Street,” and its market valuation soared: in 2021, Reddit raised funds at a valuation of 10 billion US dollars; in 2022, there are news reports that the company's IPO valuation may be as high as 15 billion US dollars. Compared to then, Reddit's valuation has shrunk drastically now.
It is worth mentioning that OpenAI CEO Sam Altman (Sam Altman), the “world's number one AI person” that has recently garnered much attention, is also one of Reddit's major shareholders. According to the prospectus, Ultraman holds 4.5% of Reddit Class A shares and 9.3% of Class B shares. In total, he holds 8.7% of the shares, has 9.2% voting rights, and is the third largest shareholder of the company. Ultraman also served as CEO of Reddit for 8 days in 2014.
Furthermore, Tencent is also among the majority shareholders of Reddit. According to the prospectus, Tencent holds 6.4% of Reddit Class A shares and 11.7% of Class B shares. In total, it holds 11% of the shares, has 11.6% of voting rights, and is the company's second-largest shareholder.
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