Reddit's upcoming initial public offering is reportedly four or five times oversubscribed as the social media platform seeks a $6.5 billion valuation from its stock market debut.
Reddit's initial public offering is currently between four and five times oversubscribed as it seeks a $6.5 billion valuation, people familiar with the matter told Reuters on Sunday. Oversubscription doesn't guarantee that Reddit will have a strong performance in its stock market debut, although it indicates the company is likely to at least reach its targeted price range of $31 to $34 per share when it prices the IPO in New York on Wednesday, the sources said.
The social media network – which hosts forums for users to share, discuss and vote on content – has lost money each year since its 2005 launch and has struggled to match the commercial success of rivals like Meta's Facebook and X, formerly known as Twitter. Some advertisers have balked at many Reddit users' focus on niche content and the platform's approach to content moderation. The platform relies on users who volunteer to moderate the content posted on Reddit forums.
As volunteers, moderators can withdraw from the role at their discretion and several quit in protest last year over Reddit's decision to charge third-party app developers for data access. Reddit's 100,000 online forums, known as "subreddits," facilitate conversations on topics ranging from "the sublime to the ridiculous, the trivial to the existential, the comic to the serious," according to co-founder and CEO Steve Huffman.
Reddit's "wallstreetbets" forum helped drive the "meme-stock" craze of 2021 when retail investors collaborated to buy shares of highly shorted companies like video game retailer GameStop. To attract its own retail investors, Reddit has reserved 8% of the total shares on offer through the IPO for eligible users and moderators on the platform, along with certain board members and friends and family members of the company's employees and directors.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Reddit could help spark long-awaited IPO reboundWall Street may be regaining its appetite for new companies, which could be good news for local startups, investors and San Francisco
Baca lebih lajut »
Reddit Aims to Raise $748 Million in IPOReddit plans to raise up to $748 million in its upcoming IPO, seeking a valuation of about $6.5 billion. The company will sell about 22 million shares between $31 and $34 per share. Redditors participating in the IPO may cause increased volatility in the stock market.
Baca lebih lajut »
Reddit aiming for $6.5B valuation in long-awaited IPOSocial media platform Reddit is targeting a $6.5 billion valuation in its highly anticipated initial public offering (IPO), the company reported Monday.
Baca lebih lajut »
Reddit targets valuation of close to $6.5 billion in upcoming IPOReddit and selling shareholders aim to raise roughly $750 million as part of the company's upcoming IPO at a valuation of almost $6.5 billion.
Baca lebih lajut »
FTC investigating Reddit over AI data-licensing practices ahead of IPOReddit said in an updated IPO prospectus on Friday that it’s being investigated by the Federal Trade Commission for its data-licensing practices.
Baca lebih lajut »
Reddit discloses FTC probe into its AI content licensing practices ahead of IPOThe Federal Trade Commission is looking into Reddit’s licensing of platform content to artificial intelligence companies, the social media company disclosed Friday in a securities filing.
Baca lebih lajut »