Company that rocked Wall Street to go public
Social media platform Reddit announced it has confidentially filed a draft registration with the US Securities and Exchange Commission (SEC) to become a publicly traded stock.
“The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions,” Reddit Inc. said in a statement released on Wednesday.
According to the company, neither the number of shares that would be offered nor the price range for the stock have been determined so far.
Reddit hoped to be valued at more than $15 billion, according to unnamed sources cited by Reuters back in September, shortly after the company was valued at $10 billion in a private fundraising that brought around $700 million. In February, Reddit raised another $250 million.
Reddit was founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian. It became known for its niche discussion groups, lagging in popularity of other major social media platforms like Facebook or Twitter. In 2006, the platform was purchased by global mass media company Conde Nast. Reddit became an independent subsidiary a decade ago.
The enormous media influence of the platform came to light in January 2021. An army of stay-at-home traders, communicating on Reddit’s WallStreetBets forum, rocked Wall Street by betting against hedge fund short positions on a number of companies.
They bet on shorted stocks like GameStop and AMC. As a result, stocks of the struggling brick-and-mortar video game retailer and theater chain skyrocketed, costing hedge funds billions.
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