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Ahead of tomorrow's initial public offering, Reddit (RDDT) disclosed it received a patent infringement claim from Nokia (NYSE:NOK).
"On March 18, 2024, Nokia Technologies sent us a letter indicating they believed that Reddit infringes certain of their patents," Reddit wrote in a filing. "We will evaluate their claims."
Nokia is seeking compensation for the use of key inventions, with the proceeds going towards developing next-generation technologies.
Reddit which is slated to trade on the New York Stock Exchange under the "RDDT" ticker, is expected to price its shares for initial public offering on March 20.
Last week, Reddit disclosed that the U.S. Federal Trade Commission inquired about the social media company licensing its data to third-parties for the purpose of training artificial intelligence models.
Reddit's IPO is reportedly between four and five times oversubscribed. The demand for the shares likely will help the social media platform to reach its goal for a valuation of $6.5B.
The company is looking to raise $748M and sell 22M shares in the range of $31 to $34 per share.
Lead underwriters on the deal are Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan (JPM), and Bank of America Securities (BAC).
Reddit generated $804M in revenue in 2023, up from $666.7M in 2022. It had gross margins of 86% and 84% in 2023 and 2022, respectively, while net losses during the same time periods were $90.8M and $158.6M.
Adjusted EBITDA for 2023 and 2022 came in at negative $69.3M and negative $108.4M, respectively.
Reddit was acquired by Condé Nast in 2006 and became an independent company in 2011.