Reddit goes public

This is the first IPO of a social network since Pinterest, in 2019.

Open in full screen mode

Reddit made its IPO on March 21, 2024, a first in five years for a social network.

Agence France-Presse

Nearly 20 years after its launch, the social network Reddit will be listed on the New York Stock Exchange on Thursday, with shares at a price expected to value the group at US$6.4 billion (US$8.7 billion). Canadian dollars).

Reddit received approval from the New York Stock Exchange on Wednesday for its listing, which traditionally comes the day after this final green light.

Its entry price is US$34 (C$50) per share, Reddit said, which will allow it to raise more than US$748 million (C$1 billion) from ;new money.

This is the first listing of a social network on the New York Stock Exchange since that of Pinterest , in 2019.

The listing of the platform known for its discussion forums is an important test for the IPO market, which is slowing down since a burst in September 2023.

LoadingA first step towards seizing Donald Trump's assets

A first step towards a seizure of Donald Trump's property

ELSELSE ON INFO: A first step towards a seizure of Donald Trump's propertyLoading in progressA first step towards seizing Donald Trump's property

A first step towards a seizure of Donald Trump's property

ELSE ON NEWS: A first step towards a seizure of Donald Trump's property< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">In filings with the SEC, Reddit says it has an average of 73 million daily active users, and more than 267 million on a weekly basis. p>

Despite its success with the public, the platform with 100,000 forums – covering celebrities, video games, social issues and even businesses – n& #x27;has never managed to turn a profit.

Like Facebook, Instagram, YouTube or TikTok, its economic model is based on advertising, but the revenue it derives from it is incommensurate with those of its big rivals.

In 2023, Reddit generated US$804 million (C$1.1 billion) in revenue, an increase of 20.5% from the previous year. But it lost US$90.8 million (C$122.8 million) that year, compared to US$158.6 million (C$214.5 million) in 2022.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">The platform also intends to grow its revenues through contracts giving access to public data from its site, very popular with artificial intelligence (AI) companies, which use it to develop their interfaces.

Being listed allows us to raise capital and provide liquidity to our workforce, who have worked tirelessly to build Reddit, wrote Steve Huffman, co-founder of the company, in a letter attached to the prospectus filed with the SEC in February.

Created almost 20 years ago by students in Virginia, United States, the social network was bought in 2006 by Condé Nast , the publisher of Vogue,The New YorkerandVanity Fairmagazines.

Open in full screen

Alexis Ohanian co-founded Reddit in 2005, with Steve Huffman and Aaron Swartz.

The company became an independent subsidiary in 2011, but Condé Nast is still the largest shareholder.

Sam Altman, boss of OpenAI – creator of the generative artificial intelligence software ChatGPT – is among Reddit's most important investors. He led a fundraiser in 2014 and briefly managed the social network.