Over the past few years, Reddit has undergone significant changes to make it more appealing to advertisers, including policy updates and implementing new rules for its communities. The platform has also been exploring ways to monetize its data for future AI developments. However, the actual value of Reddit in the current market is difficult to assess. The company plans to sell around 10% of its shares in the initial offering.
Key takeaways:
- Reddit is planning to launch its initial public offering (IPO) in March, with rumors suggesting a $15 billion valuation.
- The platform has undergone significant changes in recent years, including policy updates and a clean-up of its communities, which have resulted in growth from 52 million daily active users in 2021 to 70 million today.
- Despite these changes, there are doubts about Reddit's valuation, especially considering its ad revenue and daily active users compared to other social media platforms.
- Reddit sees potential value in AI and has increased the cost of its API access due to many Language Model Makers sourcing their conversational data from Reddit communities, suggesting a possible future direction for the platform.