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Social media site Reddit plans a $750 million IPO

Reddit told regulators it expects the price of its shares to range from $31 to $34. Shares will be traded on the New York Stock Exchange.
Social media site Reddit plans a $750 million IPO
Posted at 7:50 PM, Mar 11, 2024
and last updated 2024-03-11 21:50:47-04

Social media company Reddit told regulators it hopes to raise some $750 million when it makes its upcoming initial public offering.

In a filing with the Securities and Exchange Commission, Reddit told regulators it will offer 22 million shares of Class A common stock. It expects the price of the stock to range from $31 to $34 per share.

Reddit said it would use the funds it raised for general and tax purposes and possibly to fund acquisitions.

Reddit saw an average of more than 76 million people visiting the site every day last December, the company said. It said it has more than 100 million unique "subreddit" communities, where users post content and discussions about shared interests.

The company made a profit of more than $18 million in the October-December quarter, driven mostly by advertising.

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Reddit also announced it would share data from its user base with Google, which planned to use it for AI training and making improvements to its search results. That deal was worth $60 million, and Reddit expects to use the same agreement to improve its own internal search performance.

"This enhanced collaboration provides Google with an efficient and structured way to access the vast corpus of existing content on Reddit and enables Google to use the Reddit Data API to improve its products and services," Reddit said in a blog post announcing the deal.

Reddit is expected to be listed under the symbol RDDT on the New York Stock Exchange.


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