Reddit, the social media platform that calls itself the ‘front page of the Internet’, is finally going public.
According to Reuters an IPO has been scheduled for March, a move the company has been considering for more than three years. This marks a significant event, as it is the first major IPO of a social medium since Pinterest in 2019. Its success will depend on both market valuation and the engagement and support of the user community.
Reddit made the world press when in 2021 the Wallstreetbets subgroup made its mark on the prices of certain “meme stocks,” notably AMC and GameStop. Hollywood made a movie about it aptly named “Dumb Money.”
The IPO is not only a test of Reddit’s market value, but also a measure of user and investor confidence in social media platforms. Its success or failure could have significant implications for future technology IPOs and the ad market.
Founded in 2005, Reddit has yet to turn a profit but is valued at about $10 billion.
The IPO would include about 10% of Reddit’s shares but despite its standarding as part of Internet culture its success on the open market is not a given. Reddit competes for ad dollars from platforms like TikTok and Facebook.
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