Reddit confidentially filed for IPO and seek $15 bln valuation

Social media platform Reddit announced on Wednesday that it had confidentially filed paperwork with the U.S. Securities and Exchange Commission for an initial public offering.

The company has started the paperwork with the SEC but didn’t disclose any further details. It said in the post that the number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.

Reddit was valued at $10 billion in a private fundraising roundearlier this year.According to a report from Reuters in September,Reddit was seeking a valuation of more than $15 billion.

Reddit Inc, founded in 2005, is the operator of online message boards that became the go-to destination for day traders chasing this year's frenzy for so-called meme stocks.

Reddit is one of a generation of proto-social media companies that allowed users to trade comments, stories, photos and videos using topic-based message boards.

At last count in August, the site is home to more than 100,000 active communities visited by upward of 50 million people every day.

Reddit sold itself in 2006 to Condé Nast, the magazine publisher that owns Wired. In 2011, it spun out and became a separate company owned by Advance Publications, Condé's parent company.

Advance remained the majority shareholder through several rounds of financing, but by 2019, its stake was reportedly reduced to 30 to 35 percent. It wasn't clear how much Advance owns today.

One subreddit, WallStreetBets, has become a popular forum for discussing stocks, and its users have been known for propelling the shares of companies like GameStop and AMC to astounding heights. Members of the communities often see high-risk day trading as an opportunity to quickly improve their financial conditions and obtain additional income.A public Reddit could become that forum's next big topic of discussion.

The company makes most of its money through advertising. The hype on Reddit has contributed to its financial success. In Q2, Reddit broke $100 million in advertising revenue, an almost threefold jump from the same period last year.

Reddit focused more of its energies on building the company’s business now. Reddit sells advertising to brands and marketers, and allows users to buy digital goods and services across the site.

In addition, Reddit acquired Dubsmash, a TikTok-like video platform, and Mr. Huffman has said he hopes to improve the company’s video products as a potentially lucrative revenue stream.