The social network, which gained huge popularity this year after one of its forums boosted Wall Street stocks, plans to go public.
The social media platform, Reddit, announced this week that it has confidentially filed an initial public offering (IPO) with US regulators.
In a press release this week, the San Francisco-based company indicated that it had filed a draft registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC). Reddit He added that the number of shares and the proposed price range for an initial public offering have not been determined and he expects the IPO to occur once US regulators complete their review process.
Hi, we have some news. pic.twitter.com/DjkjBRloHF
– Reddit (@Reddit) December 16, 2021
It should be noted that Form S-1 is the presentation that companies fill out in the United States with the intention that their shares can be traded on the national stock market. Companies typically file Form S-1 prior to an IPO, a document in which they provide information on their planned use of capital income, detail their business model, and disclose other important business data, including a prospect of planned value in Yes.
Reddit prepares to go public
The news confirms previous reports about the social network’s plans to go public. As reported Daily bitcoin, Reddit hired its first chief financial officer, Drew Vollero, in March in an attempt to get the company’s books in order before an eventual IPO. In accordance with Bloomberg, Vollero is known for leading the IPO of Snap Inc. in 2017.
Later, in September, the The company said it expected to reach a valuation of more than $ 15 billion by the time it planned to list its shares., as reported Reuters. That goal emerged shortly after Reddit raised $ 410 million in a funding round led by Fidelity which valued the company at USD $ 10 billion.
The platform generated record ad revenue of $ 100 million for the first time in the second quarter, nearly triple the amount from a year earlier, it reported in a statement in August. Now the company is trying to dig into audio and video, where ad rates tend to be higher.
Founded in 2005 by Steve Huffman and businessman Alexis Ohanian, Reddit is an online forum platform where people meet to discuss various topics. By October of last year, the social network had approximately 52 million daily active users and more than 100,000 communities, called “sub-reddits“.
Reddit captured the attention of news media around the world this year after one of its online forums, WallStreetBets, shook the stock market. The board became a force on Wall Street earlier this year after leading a coordinated strategy to buy and raise the prices of various stocks. As a result, the prices of GameStop Corp, AMC Entertainment Holdings Inc and other companies skyrocketed in a move that has now been billed as the “stock market meme frenzy“.
Article by Hannah Estefanía Pérez / Daily bitcoin
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