Social-media company Reddit, which hosts popular online message board WallStreetBets, is considering plans for an initial public offering early next year, according to a news report.
The San Francisco company is seeking to hire investment bankers and lawyers to setup its IPO filing, Reuters reported.
Last month, Reddit was valued at $10 billion after it closed a $410 million round of funding led by Fidelity Investments.
“Reddit hopes it will be valued at more than $15 billion” by the time it files the IPO, a person familiar with the development told Reuters.
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Reddit has received increased attention from money managers and saw a surge in traffic after WallStreetBets members banded together and targeted the heavily shorted GameStop (GME) – Get GameStop Corp. Class A Report stock. The move prompted a retail trading frenzy.
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Short sales are bets that a stock will drop. Many on WallStreetBets tried to beat the short-sellers by buying the stock of GameStop and others that had been sold short.
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Reddit's CEO and co-founder, Steve Huffman, has said that WallStreetBets is a community that specializes in higher risk, higher reward investments than what one might find in other more conservative financial communities.
Reddit was founded in 2005 by Huffman and entrepreneur Alexis Ohanian.
The company is much more than WallStreetBets, hosting discussion groups on many subjects. Reuters reported that as of January, Reddit had more than 52 million daily active users and more than 100,000 communities.
Reddit topped $100 million in second-quarter ad revenue, nearly triple the year-earlier figure, Reuters reported.
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