Reddit IPO possibility this year

February, 2023

Vine Strategy


Reddit IPO possibility this year

Reddit is a news and discussion forum platform that provides its users with unlimited talking points through subreddits. Online community posts are popular within Reddit that discuss set topics, such as films and entertainment, recent events and almost anything that involves a debatable point.

Reddit’s primary revenue source is advertising presented to the site’s approximately 430 million monthly users. The company also offers a premium subscription for $5.99 per month that offers ad-free browsing, exclusive rewards and avatars and other customizable features not available for nonmembers.

The continuous growth and popularity of Reddit prompted the company to start the initial public offering (IPO) process in 2021. The company delayed the IPO, with a current plan for launching it later for 2023.

Reddits IPO

Due to market volatility and broad selling of technology stocks, Reddit delayed the IPO and is looking to launch in the second half of 2023. Reddit holds a $10 billion valuation, which is down from its 2021 valuation of $15 billion. Fidelity Investments ranked the company at a $6.6 billion valuation in February, reflecting the broader fall in the stock market, technology firm values and economic uncertainty.

To move forward with a successful IPO in this market, Reddit will need to reassure investors it can make money through advertising, even in an economic downturn. It might need to present additional ads to users or make them more prominent or intrusive, which could turn away some users.

With the financial market turbulence, Reddit’s management will consider whether the timing is right for a 2023 IPO or whether it will need to push into 2024 or beyond.

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