Reddit Files For IPO And WallStreetBets Goes Bonkers
Pretty soon you might be able to own a piece of Reddit
, the hugely popular social news site, and also one of the most visited websites of any kind. Last night Reddit announced it is in the beginning process of going public, having filed a confidential initial public offering (IPO) with the Securities and Exchange Commission (SEC).
"The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions," Reddit said.
Little other information is available—citing regulatory reasons, Reddit said it is in a quiet period and cannot discuss the matter in more detail. However, the announcement comes just a few months after Reddit said it had raised $410 million in additional funding and intended to bump that number to $700 million, which would value the site the at more than $10 billion.
At the time, Reddit also said it intended to double its workforce from 700 to 1,400 employees, and that it was considering an IPO. It's not clear if Reddit, which had at one time dubbed itself "the front page of the internet," is turning a profit.
There is speculation that Reddit may take aim at a $15 billion valuation with its IPO. Whatever the case, the announcement has sparked a discussion in the WallStreetBets sub-Reddit with a broad range of opinions on the matter. Here are some of the comments so far...
"Gentlemen, it's been a pleasure burning up retirement funds with you these couple of years." - acapDD
"My gut's telling me this is bad fur us Reddit users. So buy." - edgar_de_eggtard
"If we all bought shares we could control Reddit. Just sayin'." - porcupineapplepieces
"Will I be able to buy shares with karma?" - 1Litwiller
"Today, we're users. Tomorrow, we're products." - KrazyMoose
"Reddit to the moon!" - IronicMoron
"The beginning of the end..." - heresmykey
Those are just some of the *ahem* less colorful (and fit for print) comments on the subject. The filing shouldn't come as a surprise, though, given the site's massive size (52 million daily users, over 100,000 active sub-Reddits) and past comments suggesting this was the plan.
That said, it will be interesting to see if WallStreetBets attempts to pump Reddit's stock as it did with AMC
(among others). We're also curious what wholesale changes might be in the store when Reddit becomes a publicly traded company.