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Reddit is hiring lawyers and bankers in advance of its $15B IPOreport

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Reddit plans to hire investment bankers as well as lawyers in its plan to go public next year, according to Thursday. 

Reddit most recently raised money in a private fundraising round in August at a valuation of $10 billion — meaning that an IPO at a valuation of $15 billion would represent a dramatic 50 percent increase in the company’s valuation in just a matter of months. 

The timing and size of the popular online message board’s IPO could change depending on market conditions, sources told the outlet. 

Three months ago, Reddit CEO Steve Huffman had teased an IPO possibility. In May, he told The New York Times that he was the co-founder of Reddit. “thinking about”And “working toward”Going public. He didn’t provide any details regarding the timing or valuation. 

Reddit — which was founded in 2005 and is minority owned by Condé Nast parent company Advance Publications — declined to comment on the report. 

Reddit could be a lucrative investment for other investors, such as venture capitalists Peter Thiel or Marc Andressen, the celebrities Snoop dogg and Jared Leto as well as Chinese tech giant Tencent, and US asset manager Fidelity Investments. 

Reddit was well-known in the 2000s and 2010, for its niche discussion forums. “subreddits.”The San Francisco-based firm was far behind the major social media companies like Twitter and Facebook.

Reddit saw an explosion in traffic during the pandemic. Retail investors came to forums like r/WallStreetBets, to discuss trading. “meme stocks”Gamestop and AMC as well as cryptocurrency like bitcoin and dogecoin. 

As of October 2020, the site had 52 million active users per day. Huffman stated that it had millions of new users in the early part of the trading frenzy. However, the company has not released any updated statistics. 

Reddit earns most of its revenue through advertising. Reddit reported $100 million in advertising revenue for the second quarter. This is almost three times the amount it earned in the same period last years.

With Post wires

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