The company's unique structure, which includes user governance and anonymity, has led to some controversy and challenges on its path to IPO. Reddit plans to offer a portion of its shares to its most loyal users, a move that analysts say could lead to mixed results due to the platform's history with the "meme stock" phenomenon. The company acknowledged the potential volatility risk in its IPO filings. However, initial response from users to the share offer has been lukewarm.
Key takeaways:
- Reddit is preparing for its debut on the New York Stock Exchange under the ticker symbol RDDT, making it one of the last traditional social media companies to list on the stock market.
- The company's S-1 form reveals that OpenAI CEO Sam Altman is the third-largest shareholder with a 8.7% stake, and Reddit's revenues rose roughly 21% last year to $804 million.
- Reddit has also listed data licensing and AI training as part of its income streams, recently signing a $60 million-a-year deal with Google to license its content for AI training.
- The company is offering a portion of its shares to some of its most loyal users, a move that analysts say could lead to mixed results due to the platform's history with the "meme stock" phenomenon.