Reddit Inc update
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Reddit, an online discussion forum for users Disrupt the U.S. stock market Earlier this year, the company was experiencing its own valuation soaring as a new round of financing reached its valuation of US$10 billion.
The financing led by Fidelity Investments has increased Reddit’s valuation by 67% since the last round FebruaryThe transaction will provide the social media company with up to $700 million in new funding, which means that its value has more than tripled in two and a half years.
According to data from PitchBook, which tracks private companies, Reddit has raised a total of $1.6 billion so far after the financing is completed.
“We are optimistic and encouraged. Not only do we have the resources and capital to continue our growth path, but our investors support our vision and want to deepen their holdings in our future,” Reddit said in a statement. Blog post Announce the round.
Reddit has hundreds of millions of users every month, from the “memetic stock” traders gathered on it r/WallStreetBets Message board for those cute photo fans who flock to r/aww. In the fourth quarter of 2020, more than 52 million people visit its website and apps every day to discuss games, music, news, and Cryptocurrency There are tens of thousands of active “subreddit”.
After years of adopting a more non-interfering approach to content review than other social media platforms, recent efforts to tame its unruly user base have also helped attract advertisers.
But Reddit’s ability to generate revenue from these users has long lagged behind its social media counterparts.
The 16-year-old Reddit stated that its advertising revenue reached $100 million for the first time in the second quarter of 2021, a year-on-year increase of 192%. One year after Twitter was founded on Reddit, it generated $1.2 billion in sales from 206 million daily users during the same period.
This has not prevented Reddit from taking steps to conduct an initial public offering. In March, it hired its first chief financial officer, Drew Vollero, who helped Snapchat’s parent company, Snap, go public in 2017.
Reddit CEO Steve Huffman told New York Times He has no “fixed timetable” for the initial public offering.
At the same time, Reddit has been expanding outside the United States, opening offices in the United Kingdom, Canada, and Australia, as it plans to double the number of employees this year.
With the acquisition of TikTok’s competitor Dubsmash in December last year, it has also been expanding from traditional text and photo-based message boards to new formats, such as club-style audio chat rooms, Talk and video.