With a lot of effort, and thanks to a loyal community of users, Reddit it has earned a very important place on the web. More than 15 years have passed since it started operating, but the platform remains valid and is committed to continuing to grow. Therefore, it is not surprising that the directors of the company sustain the intention to go public.
This was stated by Steve Huffman, co-founder and CEO of Reddit, in an interview with The New York Times. Likewise, although the firm behind the popular website maintains the desire to request the public offer of sale, it does not despair. He knows that at some point he will, but he does not set deadlines.
“We are still planning to go public, but we don’t have a firm timetable yet. All good companies should go public when they can,” the executive said. The statement comes just as Reddit has just successfully closed a new round of funding for $ 410 million, which has raised its valuation. above $ 10 billion of dollars.
Reddit does not abandon its intention to go public
While the current value Reddit can boast is not related to its hypothetical performance when it goes public, it does demonstrate how steadily its business is growing. In fact, the company posted advertising revenue of more than $ 100 million in the second quarter of this year. According to Huffman, this has meant a growth of 192% compared to the same period in 2020.
Of course, these are substantially smaller numbers than the bigwigs in the industry can boast, but Reddit is at its own game. Despite having suffered some shots in recent years, especially due to the explosion of hate speech in the subreddits, the platform seems to have found an interesting stability that is also reflected financially.
“We have grown up in the shadow of Facebook and Google, and we have fought for almost all of the dollars we make,” Huffman said. When Reddit eventually has its public offer for sale, it will be interesting to see how the major stock markets react.
Recall that, at the beginning of this year, a “simple” subreddit put Wall Street in trouble. This happened when two million community users agreed to inflate the stock price of GameStop, which caused a worldwide shakeup worthy of a movie.