The online discussion platform Reddit has taken the first steps towards an IPO on Wall Street. However, it is not yet clear when that will occur and how big it will be.
The popular online message board where users can talk about various topics, Reddit announced that it had filed a file with the US stock market watchdog, the Securities and Exchange Commission or SEC. The IPO will take place after examining the file by the stock market watchdog and ‘subject to market and other circumstances’.
How many shares Reddit will list and at what price has not yet been determined. In a financing round last summer, the company was valued at about 10 billion dollars (almost 8.9 billion euros).
Founded in 2005 by two college students in Virginia, Reddit has grown into one of the most influential social media outlets. There were over 50 million daily users and over 100,000 active groups in February.
Reddit’s influence became clear in January when investors encouraged each other via the platform to massively buy certain stocks, such as game store chain GameStop and cinema chain AMC. They did this to put a heel on large investment funds that speculated on a fall in prices. That was also called the Reddit rally.
