Reddit, the 18-year-old social media network, is all grown up. Almost. After meeting with potential investors ahead of its upcoming IPO, the company is considering a valuation of at least $5 billion, Bloomberg reports.
At the moment, private trades of unlisted Reddit shares value the company below that number, at between $4.5 billion and $4.8 billion. Such trades sometimes indicate a lower valuation than a company might achieve in an IPO, as private shares are relatively illiquid. On the flip side Those numbers may indicate that the company will achieve a lower valuation than $5 billion at the time of its IPO.
The company’s valuation will ultimately depend on how much the IPO market has recovered. In 2021, the company raised money at a valuation of $10 billion, and the following year Bloomberg reported that the company may have been worth as much as $20 billion.
That was all before the tech downturn, when companies began laying off workers and investors put a greater emphasis on profitability. Instacart’s IPO—widely seen as a bellwether for the rest of the industry last September—valued the company at $9.9 billion. That’s a downgrade from its March 2021 valuation of $39 billion.
Bloomberg reports that the company, which has more than 70 million active daily users, may go public as soon as March. Ahead of going public, the company underwent a big rebrand. In April, the company started charging third-party companies for culling its data for AI training purposes.
Recognize your brand’s excellence by applying to this year’s Brands That Matter Awards before the final deadline, June 7.
Sign up for Brands That Matter notifications here.
