Media platform Reddit is poised for an initial public offering (IPO) with an anticipated valuation of up to $6.5 billion, according to sources familiar with the matter who spoke to Reuters on Friday.
This valuation reflects a significant decrease from its previous value.
The proposed price range for Reddit’s IPO shares is set to be between $31 and $34, as disclosed by the same sources.
When approached by Reuters for comment, Reddit opted to decline.
The IPO will comprise a mix of newly issued shares by Reddit and existing shares held by its current investors and employees, one of the sources mentioned.
In a funding round in 2021, Reddit had attained a valuation of $10 billion.
The company had been aiming to sell approximately 10% of its shares during the IPO, a plan previously reported by Reuters in January.
Recognized for its specialized discussion forums and the iconic voting system allowing users to ‘upvote’ or ‘downvote’ content, Reddit disclosed last month that its net loss had narrowed to $90.8 million, with a revenue growth of around 21% throughout 2023.
The revelation of Reddit’s IPO filing came to light last week, nearly twenty years post its inception.
This development is poised to be a significant trial for the platform, which still trails behind its social media counterparts in terms of commercial success, notably lagging behind giants like Facebook and Twitter, the latter now branded as X.