Reddit to launch IPO in March: Report

Social media giant Reddit reportedly intends to launch its initial public offering (IPO) in March after nearly three years of hiring IPO advisers.

Social media giant Reddit is reportedly looking to launch its initial public offering (IPO) in March later this year, according to a report published in Reuters.

The San Francisco-based firm will reportedly sell about 10% of its shares in the IPO and its valuation will be revealed around the time of listing. The social media giant was valued at $10 billion after its funding round in 2021.

If Reddit plans to go public in March, it will be the first major social media IPO after Pinterest’s that came in 2019. Founded in 2005, Reddit became a popular online forum for people to discuss and share their experiences via various subreddits.

The platform is also known for keeping up with new technology trends, whether Web3 or artificial intellegence.

Reddit was among the first social media platforms to integrate crypto tipping features and introduced a nonfungible token program. Last year, the firm also faced backlash when it announced it would charge companies for access to its application programming interface (API), which technology companies use to train large-language models used in artificial intelligence. 

Related: Reddit back up: Site resolves ‘major outage’ after nearly 6 hours

According to the sources cited by Reuters, Reddit confidentially filed for its IPO in December 2021 and plans to make its public filing in late February, followed by a launch in early March. The social media firm reportedly held its plan to go public until it turned profitable.

With most of its revenue coming from advertising and premium subscription plans, the social media giant is expected to generate about $800 million in advertising revenue. 

The social media firm reportedly held back its plan to go public until it turned profitable.

Reuters in its report cautioned that the timeline of the IPO might get pushed back as happened earlier, citing familiar sources.