According to two individuals familiar with the matter, media platform Reddit is considering a valuation of up to $6.5 billion for its initial public offering (IPO), as reported by Reuters on Friday. This valuation is significantly lower than its previous worth a few years ago.
As per the sources, Reddit is contemplating setting a price range of $31-$34 per share.
When approached by Reuters for comment, Reddit chose not to respond.
One of the sources mentioned that some of the shares to be offered in the IPO will be new shares issued by Reddit, while others will be existing shares held by its investors and employees.
In a funding round in 2021, Reddit was valued at $10 billion. Earlier reports from January indicated that the company aimed to sell approximately 10% of its shares in the IPO.
Recognized for its specialized discussion communities and the practice of users voting "up" or "down" on posted content, Reddit recently disclosed a narrowed net loss of $90.8 million and a revenue growth of around 21% in 2023.
The unveiling of Reddit's IPO filing occurred last week, nearly twenty years after its inception. This IPO marks a significant trial for the platform, which has yet to achieve the commercial success seen by its social media counterparts like Facebook and X (formerly Twitter).
