Reports of a Reddit IPO have been circling for a while, but it appears that 2023 might be the year it happens.
Murmurs are bubbling up once more regarding Reddit launching its initial public offering. For most people, it’s a place to learn more about topics or subcultures of interest, with the site garnering tens of millions of daily active users. However, it also represents a potential new investment for those with an eye on its IPO.
Reddit is allegedly looking to go public sometime in the second half of 2023, according to a report by Reuters on February 14. Word of Reddit’s initial public offering began to surface around the first quarter of 2021, with the news aggregate and social media platform lining up a CFO ahead of the speculated IPO.
In September of 2021, it appeared that Reddit was hiring advisers for its upcoming IPO. The company had been valued at $10 billion at the time and was seeking a valuation of $15 billion. All of this movement appeared to follow on from the GameStop short squeeze that took the internet by storm and had part of its movement based on the subreddit, WallStreetBets.
Recently, it was reported that Instacart was pulling its IPO amid market volatility. With U.S. interest rate hikes, it appeared that capital market investors were hesitant to invest, with data from Dealogic noting that U.S. listings had raised $154 billion in 2021 but only $7 billion in 2022 as of October.
It will be interesting to see how Reddit responds to the market and whether it goes through with launching its IPO in the last half of this year. By sure to stop by the Shacknews Earnings Call topic for an insight into how companies have been performing over the last quarters.
