What occurred
Reddit is making its debut as a public firm Thursday on the New York Inventory Alternate, underneath the ticker image RDDT. The social media platform priced its shares at $34 on Wednesday, the highest of its IPO goal vary, valuing the corporate at $6.5 billion. The 19-year-old firm has by no means turned a revenue.
Reddit’s wholesome market debut “stems largely from a big viewers that religiously visits the service to debate a potpourri of topics that vary from foolish memes to existential worries,” The Related Press mentioned. However its loyal customers and volunteer moderators have been “maybe Reddit’s greatest impediment to a easy IPO,” The New York Occasions mentioned. A few of them fear subjecting Reddit to “market forces and the quarterly calls for of shareholders” will destroy the beloved website, and a few plan to brief the corporate.
What subsequent?
The Newhouse household, which owns Condé Nast and bought Reddit for $10 million in 2006 earlier than spinning it off, will “reap a windfall of roughly $1.4 billion,” the Occasions mentioned. And Reddit could have cash to finance its ambitions and attempt to pull in income.
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