Reddit Files For IPO

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Popular social media platform Reddit, is filing for an initial public offering. The company has kept the details of the filing a secret.

After the company was formed back in 2005, it was acquired by Conde Nast Publications in 2006. In 2011, the company became an independent subsidiary of the publication. In August this year, the company raised $700 million and reached a total valuation of $10 billion. Among the main investors are names like Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings.

The company had said during the fundraiser that the advertising revenue was 192% higher year-over-year in 2021 at $100 million.

The platform has been one of the more underrated competitors to the likes of Facebook or Twitter but in 2021, the "meme stock" period turned the fortunes for Reddit as more and more people started to sign up to keep an eye on AMC Entertainment (AMC) or GameStop Inc. (GME) stock. Now, as the platform itself is going public, the users are ready to boost Reddit's stock as well.

Last year, the company had around 52 million DAU in around 100,000 sub-reddits. Earlier this year, the company has appointed Drew Vollero as the chief financial officer. Vollero was also the CFO of Snapchat (SNAP) when it first burst into the scene.

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