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How much Sam Altman stands to gain from a Reddit IPO

Mar 11, 2024 - businessinsider.com
OpenAI CEO Sam Altman could potentially earn between $51.4 million and $56.4 million from Reddit's upcoming public offering, based on the targeted share price of $31 to $34. Altman, who has served on Reddit's board and invested in the company through five of his investment vehicles, is estimated to own about 1.66 million shares of Reddit. However, the exact number of shares he owns is not confirmed by either Reddit or Altman.

Despite reports suggesting Altman owns all shares affiliated with him, the reality is more complex. Many of these shares belong to his various funds, such as Hydrazine Capital II and Apollo Projects SPV-B. For example, Hydrazine Capital II owns nearly 9.9 million shares of Reddit, but Altman owns, at most, 5% of these shares. The rest presumably belong to the fund's limited partners.

Key takeaways:

  • Reddit is planning to go public later this month with a targeted share price of $31 to $34.
  • Sam Altman, CEO of OpenAI, owns a significant stake in Reddit, estimated to be worth between $51.4 million and $56.4 million.
  • Altman's stake in Reddit is not as large as some reports suggest, as many of the shares attributed to him are actually owned by his various investment funds.
  • Altman has a long history as an investor and has made over 155 investments since 2010, including a significant investment in Reddit in 2014.
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