Reddit Prepares for IPO with Target Valuation of Up to $65 Billion and Plans to Sell 10% of Shares

Reddit is gearing up for its initial public offering with a target valuation of up to $65 billion, as revealed by sources familiar with the matter. This valuation is a significant drop from the company's previous value. The sources mentioned that Reddit is looking to set a price range of $31-$34 per share, although the company declined to comment on the specifics.

It was also disclosed that a portion of the shares to be sold in the IPO will be newly issued by Reddit, while others will come from existing shares held by investors and employees. In a funding round last year, Reddit was valued at $10 billion. Reports suggest that Reddit is planning to sell around 10% of its shares in the IPO.

Reddit is well-known for its specialized discussion groups and unique voting system, where users can upvote or downvote content shared by other members. The company reported a net loss of $908 million and revenue growth of approximately 21% in 2023. The IPO filing for Reddit was made public recently, almost two decades after the platform's launch.

This upcoming IPO is expected to be a crucial moment for Reddit as it aims to compete with social media giants like Facebook and Twitter. The news of Reddit's plans for an IPO was first reported in March.