Reddit, the meme platform that sparked Wall Street frenzy, files for IPO

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Reddit, the meme platform that sparked Wall Street frenzy, files for IPO

eddit Inc., the social media platform that helped fuel the meme stock frenzy this year, said it has confidentially filed for an initial public offering.

The number of shares and proposed price range for an IPO hasn't been determined, according to the San Francisco-based company. The listing is expected to happen after the U.S. Securities and Exchange Commission completes its review process, subject to market and other conditions.

The company, valued at $10 billion by investors in a funding round this summer, didn't reveal what valuation it would seek in the IPO.

After a forum on the site, WallStreetBets, the stock market was jolted by a surge of interest this year. The trading frenzy, driven by posts on the site, resulted in the price of Silver, AMC Entertainment Holdings Inc. and GameStop Corp. The result was a rewrite of the rules of Wall Street trading.

The company was founded in 2005 and is one of the most influential social media companies in the world. In February, Reddit said it had more than 50 million daily users. More than 100,000 active groups are on the site, which hosts message boards on a wide variety of topics.

After Steve Huffman, now Chief Executive Officer, and Alexis Ohanian met at the University of Virginia, Reddit got its start. When Facebook was acquired by Conde Nast in 2006, Reddit diverted from its social media contemporaries like Twitter Inc. and Facebook. The magazine publisher later spun off the company, and Reddit went through a pair of chief executives before Huffman returned to the helm in 2015.

In recent years, Reddit has faced controversy for a relatively hands-off approach to moderation, which critics say allows racism and violent speech to fester.

After Huffman said that while he believed masking and getting vaccine was the right path forward during the pandemic, Reddit was a place for open and authentic discussion, including for conversations that question or disagree with popular consensus. Days later, the company banned a subreddit that allegedly had Covid-related misinformation, and that many of our users are telling us that they are confused and even frustrated with our handling of Covid denial content on the platform.

In March, Reddit hired Drew Vollero as its first chief financial officer, in an early step toward a public listing. Reddit generated advertising revenue of $100 million for the first time in the second quarter, nearly triple what it was a year ago, according to a statement in August. It is now trying to push deeper into audio and video, where ads tend to command a premium.

Details of Reddit's operations and finances will be reported later in a public filing if it continues to pursue an IPO.