Reddit is reportedly in talks with potential investors for an initial public offering (IPO).
The social media company is considering going public as early as the first quarter of 2024, Bloomberg reported Monday (Nov. 27), citing unnamed sources.
Reached for comment, a Reddit spokesperson declined to comment on the report, citing a “quiet period.”
The company is working with investment banks to explore the possibility of an IPO and was reported last year to have been considering a valuation of up to $15 billion, according to the report.
Reddit’s latest efforts signal a growing interest in the public markets as the IPO landscape gradually recovers, the report said.
The IPO market in the United States has faced challenges recently, with volatile markets and lackluster performances of some high-profile debuts, per the report. However, companies like Reddit are now eyeing the first quarter of next year for their IPOs, hoping for a more stable market in 2024.
Other companies are also considering going public in the near future, according to the report. Rubrik, a cloud and data security startup backed by Microsoft, is reportedly contemplating an IPO in the first quarter. Additionally, Kim Kardashian’s Skims underwear label, valued at $4 billion, is discussing strategic options, including a potential IPO in the coming year.
While plans can change, the fact that these companies are exploring IPO options indicates a growing interest in the public markets, the report said. After a subdued IPO landscape last year, 2023 is expected to surpass 2022’s volume, with hopes for even more opportunities in 2024.
Reddit submitted a draft registration statement as part of its S-1 filing with the Securities and Exchange Commission (SEC) in December 2021 after being valued in excess of $10 billion in a funding round four months earlier.
The listing was subsequently postponed due to the absence of profitability at that time.
Founded in 2005, Reddit is among the most popular social platforms. It became a household name when it made headlines as one of its subreddits, WallStreetBets, played a major role in bringing to life a category of stock market investing called meme stocks.
More recently, in May, it was reported that Reddit intended to make a substantial entry into social commerce, a move that could enhance the platform’s valuation and help prepare for its IPO.