Adena Friedman explains why startups have struggled to go public in uncertain times on The Claman Countdown.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Reddit’s initial public offering<\/u> (IPO) 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.<\/p>\n
Oversubscription doesn’t guarantee that Reddit will have a strong performance in its stock market<\/u> 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.<\/p>\n
Reuters’ sources said that Reddit’s marketing efforts for its IPO are continuing and asked not to be identified because the details are confidential. Reddit declined to comment on the subject.<\/p>\n
Reddit has already reduced its valuation expectations for the long-awaited IPO after it was valued in a $10 billion private fundraising round in 2021. Reddit’s IPO is currently seeking to raise as much as $748 million.<\/p>\n
REDDIT AIMING FOR $6.5B VALUATION IN LONG-AWAITED IPO<\/u><\/strong><\/p>\n Reddit’s IPO is reportedly oversubscribed by a factor of four or five, Reuters reported.<\/span> (CFOTO\/Future Publishing via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n The social media network \u2013 which hosts forums for users to share, discuss and vote on content \u2013 has lost money each year since its 2005 launch and has struggled to match the commercial success of rivals like Meta’s Facebook<\/u> and X, formerly known as Twitter.<\/p>\n Some advertisers have balked at many Reddit users’ focus on niche content and the platform’s approach to content moderation<\/u>. The platform relies on users who volunteer to moderate the content posted on Reddit forums.<\/p>\n REDDIT’S PUBLIC DEBUT COULD MEAN BIG BUCKS FOR OPENAI CEO SAM ALTMAN<\/u><\/strong><\/p>\n Reddit said in a regulatory filing that it has an average of more than 73 million daily active unique users.<\/span> (Photo Illustration by Sheldon Cooper\/SOPA Images\/LightRocket via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n 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.<\/p>\n 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<\/u>.<\/p>\n INVESTORS SUGGEST REDDIT AIM FOR MULTI-BILLION DOLLAR VALUATION AHEAD OF IPO: REPORT<\/u><\/strong><\/p>\n Reddit co-founder and CEO Steve Huffman is leading the company toward its IPO.<\/span> (Bryan Steffy\/Variety via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n Reddit’s “wallstreetbets” forum helped drive the “meme-stock” craze<\/u> of 2021 when retail investors collaborated to buy shares of highly shorted companies like video game retailer GameStop.<\/p>\n 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.<\/p>\n GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/u><\/strong><\/p>\n Reddit had an average of 73.1 million daily active “uniques” \u2013 users who use its platform at least once a day \u2013 in the last three months of 2023, according to a regulatory filing.<\/p>\n Reuters contributed to this report.<\/i><\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":" [ad_1] Adena Friedman explains why startups have struggled to go public in uncertain times on The Claman Countdown. Reddit’s initial public offering (IPO) 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 …<\/p>\n","protected":false},"author":1,"featured_media":32274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/32272"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=32272"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/32272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/32274"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=32272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=32272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=32272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Reddit](\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2024\/03\/931\/523\/Reddit-Logo.jpg?ve=1&tl=1\"){kind=logo}
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