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Rumors Suggest Reddit Could Be Considering an IPO Once Again

Reports suggest Reddit is back in talks for a potential IPO in the first quarter, considering a public offering after previous attempts. The San Francisco-based giant eyes a return to IPO discussions after prior valuations at $10-15 billion.

Reddit Reportedly Revisits IPO Plans, Eyeing Potential Public Offering

Social media behemoth Reddit is reportedly back in discussions, contemplating a potential initial public offering (IPO) according to Bloomberg's recent report.

The San Francisco-based company, founded in 2005 by Steve Huffman, Aaron Swartz, and Alexis Ohanian, is currently exploring the prospect of going public as early as the first quarter, sources familiar with the matter revealed to Bloomberg.

Last year, in December 2021, Reddit confidentially submitted a draft registration statement to the Securities and Exchange Commission for a public offering. However, these plans did not materialize. This move followed Reddit's substantial $410 million financing round led by Fidelity, valuing the company at $10 billion. The company aimed to conclude the Series F round at $700 million during that period.

Moreover, in January 2022, Reddit engaged Morgan Stanley and Goldman Sachs to facilitate the listing process, contemplating a valuation reaching as high as $15 billion.

The exact valuation for the prospective IPO in the upcoming year remains undisclosed if Reddit indeed proceeds with the offering. This reconsideration marks Reddit's renewed interest in entering the public markets after earlier endeavors and valuations within the $10-15 billion range.