Despite being valued at $10 billion in a private fundraising round in 2021, Reddit's valuation is now at $6.4 billion, lower than expected. This comes as the company faces an FTC probe over its $66 million deal with Google involving the sale of the social media platform's data for AI model training. The company's IPO has been seen as a significant move in the tech IPO landscape.
Key takeaways:
- Reddit's initial public offering (IPO) was priced at $34 a share, above its target range, raising a total of $748 million and increasing the company's valuation amidst an FTC inquiry into its sale of AI data to Google.
- Reddit and its existing shareholders sold 22 million shares at $34 each, significantly boosting its IPO and suggesting a change in the tech IPO landscape.
- Despite being valued at $10 billion in a private fundraising round in 2021, Reddit's current valuation is now at $6.4 billion, lower than expected due to an FTC probe regarding its deal with Alphabet's Google.
- Reddit's IPO has helped the company grow and gain support in its quest to go public, despite challenges since its launch in 2005, including changes on the platform and an API change that charged users for access to previously free features.