Reddit Seeks To Launch IPO In March (reuters.com) 45
According to Reuters, Reddit plans to launch its initial public offering (IPO) in March, "moving forward with a listing it has been eyeing for more than three years." From the report: It would be the first IPO of a major social media company since Pinterest's, opens new tab debut in 2019, and would come as Reddit and its peers face stiff competition for advertising dollars from the likes of TikTok and Facebook. The offering would also test the willingness of some Reddit users to back the company's stock market debut.
Reddit, which filed confidentially for its IPO in December 2021, is planning to make its public filing in late February, launch its roadshow in early March, and complete the IPO by the end of March, two of the sources said. The San Francisco-based company, which was valued at about $10 billion in a funding round in 2021, is seeking to sell about 10% of its shares in the IPO, the sources added. It will decide on what IPO valuation it will pursue closer to the time of the listing, according to the sources.
Reddit, which filed confidentially for its IPO in December 2021, is planning to make its public filing in late February, launch its roadshow in early March, and complete the IPO by the end of March, two of the sources said. The San Francisco-based company, which was valued at about $10 billion in a funding round in 2021, is seeking to sell about 10% of its shares in the IPO, the sources added. It will decide on what IPO valuation it will pursue closer to the time of the listing, according to the sources.
Investors seeking to get their money out (Score:5, Insightful)
Like most IPOs these days, this is the investors trying to get their money out, not raising capital to grow the company. If they could have made more money via private investment to fund growth, they would have.
Re: (Score:2)
Agreed. This is a textbook 'new media' zombie. Reddit has been around for around 18 years, and to my knowledge is yet to turn a profit. And that's not because they've reinvested for growth, like Amazon. They simply do not have a path to profitability.
Whatever the IPO price is, expect it to head south once those shares begin trading. Given the choice, I'd put my money into sausages. They're a far better investment so long as they're cooked and eaten before they go off.
Re: (Score:2)
Short it.
Re: (Score:2)
Cocktail sausages?
Re: (Score:2)
The whole point of VC investing is to get to IPO or acquisition to cash out so they can recover that money for some other new project.
VC are not in the business of running businesses long term. That is not their skill set. So they sell to people who do know how to take a successful mid sized company and go from there.
If VC didn't cash out they wouldn't have the funds for the next generation of startups.
Re: Investors seeking to get their money out (Score:3)
Right but as an investor you're only going to invest if you predict additional growth to buoy the stock price, looking for a dividend, or take over of the company. This IPO is merely a parachute and it's going to tank the valuation
Re: (Score:1)
In this case, yes, Reddit has no serious financial future. I totally agree. My comments were a general statement on VC investing.
Will be interesting to watch (Score:2)
...watch from the distant sidelines anyway. I can't see them getting more than a $5B valuation today, and likely much lower.
Re:Will be interesting to watch (Score:4, Funny)
Re: Will be interesting to watch (Score:3)
That will likely be the top price before it gets delisted at the end of the week
Does this mean my reddit mod position is paid now? (Score:5, Insightful)
Re: (Score:2, Interesting)
Does this mean my reddit mod position is paid now?
Nope, but if your sub is large enough I'd be happy to take over as mod since I, too, like wielding power over people.
Re: (Score:2)
I can have all that without any of the work of a mod and the whining over any decision I make. Hard pass.
Re: (Score:1)
You wouldn't do the mod work yourself, you'd program an AI to do it as a hobby project.
Do mods of large subreddits actually do the work themselves? I thought they were using third party apps to deal with it which was the whole issue with the API limits and costs last year.
Re: (Score:2)
You wouldn't do the mod work yourself, you'd program an AI to do it as a hobby project.
Only if I was stuck with this for some weird reason. Normally I'd just tell them to leave me alone.
But frankly, I don't know whether they actually did that work or not. If I do work, I expect to get paid, not yelled at, eventually taken my project away from me and told to fuck off.
Re: (Score:2)
You've been compensated in gratification for wielding your miniscule power over a few dozen people.
Re: (Score:2)
Some of those mods wield power over hundreds of active users and control what tens of thousands read.
I imagine one day they'll look back, and some of them will have grown up and cringe while others will have learned nothing and fondly remember it as the time in their life when they were 'important and powerful'.
If Reddit were smart... (Score:2)
They would offer stock to mods and users.
I'm sure this won't go badly. (Score:2)
Said no one ever.
/r/NO (Score:3)
Oh boy, I was wondering what poorly run, failure-prone shithole I could use to get rid all this extra money I have, and now I know.
It's like the Heavens opened up and said, "Throw it all away on Reddit!"
Re: (Score:2)
According to various stores that show up here, that's a good move, business wise. After all, boomers have all the money, and the kids . . . don't.
Re:Boom (Score:5, Funny)
Please tell me there's a Reddit alternative.
I've heard good things about this new "having a life" fad.
Re: (Score:1)
Re: Boom (Score:3)
"Everyone".
NO mods, NO money (Score:5, Informative)
How about we all agree not to talk about this IPO, give it the zero community support finger, and let the pricky-shits who screwed long time mods go penniless. Sorry, investors, you bought into a junkyard, and you sat by while the head junkyard dog fired everyone sorting garbage into neat piles of good stuff.
Good luck offloading your junk. It's as worthless as CryptoBros know Crypto is.
Re: NO mods, NO money (Score:2)
I doubt investors will get $0.10 on the dollar for their investment. Buying internet forums has been a losing proposition for everyone. No collaboration is needed this IPO is signal enough that the investors want out and will unload their shares on anyone unlucky enough to buy this dumpster fire of no growth
I am intrigued (Score:3)
I was intrigued by your announcement of an impending Reddit IPO and would like to participate. Do you take crypto?
Re: (Score:1)
No but NFT are accepted.
Thatsashamegoodbye (Score:2)
Re: (Score:2)
There are any left by now?
How do I get my piece? (Score:2)
I want a piece of that. Obvious.
Monetize (Score:4, Informative)
r/lol (Score:2)
Just came here to say (Score:4, Informative)
Fuck Reddit.
That is all.
When can we short it? (Score:2)
Easiest short in history.
So Reddit is essentially a walking corpse now? (Score:2)
A pity. But all things must come to an end.
Basics (Score:2)
AI fingerprints starting to show all over. (Score:2)
From the summary...
"It would be the first IPO of a major social media company since Pinterest's, opens new tab debut in 2019, and would come as Reddit and its peers face stiff competition for advertising dollars from the likes of TikTok and Facebook. The offering would also test the willingness of some Reddit users to back the company's stock market debut."
See my bold in the summary? I have seen that in over 10 articles JUST TODAY, the last being in the New York Post headline about the Boeing jet engine cat
Re: AI fingerprints starting to show all over. (Score:1)
Re: AI fingerprints starting to show all over. (Score:1)
"Amazon (AMZN.O), opens a new tab. The $1.4 billion acquisition of robot vacuum maker iRobot (IRBT.O), opens new tab, will be blocked by EU antitrust regulators [...]"
However, all articles I checked were originally from Reuters (including this
Re: AI fingerprints starting to show all over. (Score:1)