Home » Reddit prepares for IPO in New York. Sam Altman is also among the shareholders

Reddit prepares for IPO in New York. Sam Altman is also among the shareholders

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Reddit prepares for IPO in New York.  Sam Altman is also among the shareholders

There have been rumors about the possible ipo for some time Reddit on the stock exchange but just yesterday the social media platform filed its prospectus with the Securities and Exchange Commission (SEC), detailing the company’s financial performance and shareholding structure. The listing of the social platform will be a test of its ability to compete with giants such as Meta Platforms, which includes Facebook and Instagram e X (formerly Twitter), which currently have a much larger user base than Reddit.

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Quotation expected in March

The company said it plans to list on the New York Stock Exchange (NYSE) in March 2024. This would be the largest listing of a social platform since Pinterest’s IPO in 2019. According to Reuters, the company has not yet disclosed how many shares will offer in the market or at what price range, but has been evaluated 10 billion dollars in 2021.

A unique feature of the Reddit IPO is that it will allow some of the most active users to purchase shares during the IPO period, especially users and moderators, known colloquially as Redditors.

What is Reddit?

According to the data from the report filed with the SEC relating to 2023, Reddit is one of the most visited websites in the world with 267.5 million weekly active usersmore than 100.000 community attive e 1 billion total posts. In 2023 the company reported an increase in revenue of 21% arriving at 367.6 million dollars, while reducing net loss to $90.8 million from $158.6 million in 2022.

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Over the same period, the average revenue per user in the United States was $3.42 down 2% year-on-year. The social media site attributed the decline to the impact of the Covid-19 pandemic on its advertising business and the growth of its international user base.

Sam Altman among Reddit shareholders

Reddit’s largest shareholder is Advance Magazine Publishers, which owns 30.1% of the company, followed by Tencent, the Chinese Internet giant with 11%. The third largest shareholder is Sam Altmanfounder and CEO of OpenAIthe parent company of the famous chatbot, ChatGpt. Altman owns the8.7% of the company and has 9.2% of voting power. In 2014, Altman invested the sum in the social platform of 50 million dollars in an investment round that raised approx 500 million of dollars.

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