Business Reddit files to list IPO on NYSE under the ticker RDDT - Reddit are trying to sell stocks to jannies too while spez made 200 million last year lmfao

• Reddit on Thursday filed to go public.
• Its market debut will mark the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019.
• The social media company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook.

Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”

Its market debut, expected in March, will be the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019.

Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.

The company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared with a net loss of $158.6 million the year prior.

Reddit is one of the most-visited websites in the U.S., according to analytics firm Semrush, but it has struggled to build an online advertising business comparable to those of tech giants such as Facebook parent Meta and Google parent Alphabet.

Reddit has more than 100,000 communities, 73 million average daily active uniques, or DAUq, and 267 million average weekly active uniques, according to the filing. As of the fourth quarter of 2023, Reddit’s U.S. average revenue per user, or ARPU, was $5.51, down from $5.92 from the previous year. The company’s global ARPU was $3.42, which was a 2% year-over-year decline from $3.49.

Reddit said that by 2027 it estimates the “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Reddit said the current addressable advertising market is $1.0 trillion, sans China and Russia.

The company is building on its search capabilities and plans to “more fully address the $750 billion opportunity in search advertising that S&P Global Market Intelligence estimates the market to be in 2027.”

Reddit said it plans to use artificial intelligence to improve its ad business and that it expects to open new revenue channels by offering tools and incentives to “drive continued creation, improvements, and commerce.“

It’s also in the early stages of developing and monetizing a data-licensing business in which third parties would be allowed to access and search data on its platform.

For example, Google on Thursday announced an expanded partnership with Reddit that will give the search giant access to the company’s data to, among other uses, train its AI models.

In June, several prominent Reddit moderators locked subreddits as part of a blackout to protest the company’s decision to increase the price some third-party developers pay to use its application programming interface, or API, depending on their usage. At the time, Reddit said the pricing change was necessary because many big tech companies were using data to train large language models.

“In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0 million and terms ranging from two to three years,” Reddit said, regarding its data-licensing business. “We expect a minimum of $66.4 million of revenue to be recognized during the year ending December 31, 2024 and the remaining thereafter.”

Reddit appears to be investigating a business strategy akin to that of Roblox, which derives the bulk of its revenue from digital sales on its social gaming platform, and online retailer eBay. The company wants to introduce more features to create a user economy that could include games, according to the filing. Reddit said there are currently informal exchanges of physical and digital goods and services that may create another line of revenue.

Reddit will offer three classes of stock with different voting shares. Class A stock will come with one vote per share. Class B shares will come with 10 votes per share and can be converted at any time into one share of Class A stock. Class C shares have no voting rights.

Reddit said that its non-employed moderators, known as Redditors, can participate in the company’s IPO offering through its “directed share program.” Because of this, Reddit said there’s a possibility of “individual investors, retail or otherwise constituting a larger proportion of the investors participating in this offering than is typical for an initial public offering.” Reddit said it had an average of more than 60,000 daily active moderators in December 2023.

“These factors could cause volatility in the market price of our Class A common stock,” the company warned.

Regarding risks, Reddit said its daily active unique figures “may fluctuate or decrease in one or more markets from time to time due to various factors.”

“For example, although we saw increased growth in our user base during the COVID-19 pandemic, we experienced lower levels of DAUq growth and declining DAUq as the effects of the COVID-19 pandemic subsided,” the filing said. “DAUq has also declined in the past in periods following usage peaks surrounding certain worldwide events, such as the onset of the conflict between Russia and Ukraine in the three months ended March 31, 2022, and cultural trends, including video game releases, such as Elden Ring in the three months ended March 31, 2022, and traffic related to r/wallstreetbets in the three months ended March 31, 2021.”

Reddit first filed a confidential draft of its public offering prospectus with the Securities and Exchange Commission in December 2021. The company has an employee headcount of 2,013 as of December 31, 2023, which was up from 1,942 during the previous year.

Reddit has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook. Publishing giant Condé Nast bought Reddit in 2006. Reddit spun out of Conde Nast’s parent company, Advance Magazine Publishers, in 2011.

Advance now owns 34% of voting power. Other notable shareholders include Tencent and Sam Altman, CEO of startup OpenAI.

https://www.cnbc.com/2024/02/22/reddit-files-to-list-ipo-on-nyse-under-the-ticker-rddt.html (Archive)

Message some jannies received trying to sell stocks to them:

Hello,

TL;DR: – you're invited to a special program that lets redditors purchase stock at the same price as institutional investors when we IPO. Details about eligibility and next steps follow. This (long, dense) message has all the info we can provide due to legal restrictions.

As you may have heard, Reddit has taken steps toward becoming a publicly traded company with the initial public filing of our registration statement with the U.S. Securities and Exchange Commission on February 22, 2024. Yes, it's happening.

And because you have helped make Reddit what it is today, you now have the opportunity to become Reddit owners at the same price as institutional investors.

We're offering a Directed Share Program (“DSP”) that invites eligible users and moderators who have contributed to Reddit to participate in our initial public offering (“IPO”). (Including you!)

Program Requirements​

While being selected to pre-register is the first step, there are certain legal and regulatory requirements to participate in the DSP that are outside of Reddit's control. Bear with us here…

To be eligible for the DSP, you must:

• Be a current U.S. resident;

• You will be asked to provide the DSP Administrator a valid social security or permanent resident number, along with other personal information. Reddit will not have access to this data.

• Please note that U.S. residents using a VPN may face application limitations if the VPN locates them in certain non-U.S. jurisdictions.

• Be at least 18 years old;

• Provide your full legal name and an email address;

• Not be a current or former Reddit employee (FTE).

When the DSP launches (a few weeks after pre-registration ends), individuals who have been confirmed for the program will be contacted by our external DSP Administrator. You will then be asked to provide additional information securely to the DSP Administrator to confirm your eligibility.

How to pre-register​

The number of people who can participate in the DSP is limited; we will offer this opportunity to as many redditors as we are able to accommodate. If capacity is reached before the deadline, you will be added to the waitlist. Based on demand, we may also limit the number of shares available.

If you are interested in being part of Reddit's DSP, please go to https://reddit.com/dsp on desktop to complete the pre-registration form. If you are one of the confirmed participants, we will follow up with an email with more details in the coming weeks. You can also refer to the Frequently Asked Questions for more information. Due to regulatory restrictions (yeah… we know…), we are not able to respond to further inquiries or questions.

Pre-registering does not guarantee that you will be invited or able to participate in the DSP; it also does not obligate you to purchase shares.

As with any investment opportunity, you should make an individual decision based on your own personal circumstances and risk tolerance. Therefore, we urge you to review the preliminary prospectus, when available, before deciding whether to invest in Reddit.

The deadline for pre-registering for the DSP is March 5, 2024. If capacity is reached before the deadline, you will be added to the waitlist.

What happens next?​

While there won't be a confirmation email immediately after you pre-register, everyone who pre-registers will receive an email in the coming weeks from “noreply@redditmail.com” telling them whether they can proceed with the next steps for the DSP.

This is an automated message (beep, boop, beep) and does not receive replies. Please refer to the FAQ for more information. Per our lawyercats, we are not able to respond to further inquiries or questions.

Prospectus and Important Disclosures

*The offering will be made only by means of a prospectus. When available, a copy of the preliminary prospectus related to the offering may be obtained from:

Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316, or email: prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, Attention/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or email: prospectus-eq_fi@jpmorgan.com; and BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322, or email: dg.prospectus_requests@bofa.com.*

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This notification shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date. An indication of interest in response to this notification will involve no obligation or commitment of any kind.

Spez made almost 200 million last year too:



And it's important for the jannies to do it for free:



SEC filing attached and can be found here: https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm (Archive)

 

[4090 Chad]

Hopefully this leads to that tranny janny bardfin getting removed as an admin for being a threat to the brand.

 

[Seething Troon Collector]

How are you going to give stock to a bunch of communists that find the idea of private ownership of corporations so utterly abhorrent that they'd rather die of old age penniless and in debt. I can't wait to watch this implode, risk managers at investment firms will run away screaming bloody murder the first time they see some tranny rape porn or DIY HRT drug smuggling, how do I commit customs fraud support subreddit.

Plus they missed the boat to capitalize on this by about 2 years, the era of free money and endless capital in tech is over. I'll be surprised to see this survive the next tech bubble.

Don't forget to bookmark this and tell me how wrong I am if Reddit becomes the next Facebook or something.

 

[sadrefrigerator]

at long last, I've been waiting forever to start shorting the blue fuck out of Reddit stock.

So what's the right call here? Buy it at launch, wait for the brief spike in price and sell later that day, or short it at launch and lol as the price tanks a day later?

There's little opportunity for retail investors to short an IPO. The big guys will take all the best positions. By the time you can enter a bearish position, your premiums are going to be insane.

 

[Rudolf's Friend]

Question should be: what happens next? If Reddit collapses or closes or whatever, where does the user base go? Do forums make a comeback? Or will some equally-pozzed (maybe even more so) alternative spring up?

Probably Twitter, or one of the Twitter alts like Threads just like what happened when Tumblr had it's porn ban. ResetEra is another place I could see them going to as well if they aren't already there.

 

[make_it_so]

Reddit said that by 2027 it estimates the “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Reddit said the current addressable advertising market is $1.0 trillion, sans China and Russia.

Only an absolute imbecile could possibly believe that a glorified message board system could be worth $1 trillion dollars. Unfortunately, absolute imbeciles are who call the shots on Wall Street these days.

 

[The Gene Genie]

Probably Twitter, or one of the Twitter alts like Threads just like what happened when Tumblr had it's porn ban. ResetEra is another place I could see them going to as well if they aren't already there.

I don’t think Twitter occupies quite the same niche, that is to say an ostensible “community” devoted to a specific topic. Twitter acting as Tumblr’s refuge haven made sense in that Tumblr was basically just people blog posting and that’s what Twitter is just with less character limits. Reddit is, or was tbh, the “replacement” of the disparate forums and boards that used to be everywhere and dedicated to everything from gardening to politisperging.

I hope that forums make a comeback, but I feel like it’ll just be a Reddit clone with the pozload baked in from the start.

 

[FrancineCansMcGee]

I just don't see how this is going to work out for them. I perceive a lot of discontent among users with how Reddit has been run for several years now and people desperate for an exit. So, assuming this stock actually does start to perform, I imagine that exit will appear in the form of a well funded and more sanely moderated competitor hoping to steal their thunder.

 

[Fried-Rice12]

There's little opportunity for retail investors to short an IPO. The big guys will take all the best positions. By the time you can enter a bearish position, your premiums are going to be insane.

My prediction is that the prices will plummet immediately following the IPO and they will never climb back up again. This will culminate in reddit's delisting 6 months later due to the price being under $1 dollar for too long.

 

[Whoopsie Daisy]

INB4 either/both:

Musk buys it
Reddit is bought by another company

 

[Sweeter and Savoury]

I decided to go slumming and check out le Reddit and boy are the lefties seething.

Turns out you have to disclose CEO salary in your IPO paperwork and Spez hauls in a kool $193 million a year.

That's a lot of dosh for a do nothing CEO so the NEETs are raging and mods are talking another blackout.

Fun times ahead for the troon model brigade.

 

[Phalanges Mycologist]

This is fun, they just announced that anything submitted to them is going to be sold to google for AI training, Advertisers are going to start demanding they get real clicks, Investors are going to want to see returns and there users and content is well distasteful to advertisers - you have everything from blatant CP bait / advertisements on some subs, Porn that's so fucked up even old /b/ would blush, a political polarisation that prevents users from forming a decently cohesive community not because it's one side vs the other but one side hating it's self.

Don't get me wrong it's done well as a link aggregator / content farm but nothing about it is unique enough that something else couldn't take it's place.

My prediction is 6 - 12 months Reddit is dead or the Reddit we know an loath has been corporatized to the point it alienates it's user base and they splinter off and look for another home.

 

[dustbuster]

at long last, I've been waiting forever to start shorting the blue fuck out of Reddit stock.

If they're paying spez 200 million while cash negative they deserve to be shorted.

I want to know where the money is coming from that they can lose hundreds of millions a year and still operate.
I detect the stench of 3 letter government intel agency money.

Musk buys it

Even he won't touch this money pit.

Using the traditional valuation method of 3xRevenue, reddit would have to PAY someone half a billion dollars to take it.

 

[Pedophobe]

The fact they’re trying to get their jannies to buy into the stock scheme is proof this is a pump and dump and their financial situation is grim. They’re only going IPO as one last fleece before it’s sold off.

Question should be: what happens next? If Reddit collapses or closes or whatever, where does the user base go? Do forums make a comeback? Or will some equally-pozzed (maybe even more so) alternative spring up?

Someone (e.g. Amazon) will take it over at scrap prices and keep it on life support for a few more years just to prevent the user base from dissipating as it slowly dwindles down to nothing and becomes a distant memory.

 

[dustbuster]

Interesting how pyramid schemes are illegal, but you're allowed to "IPO" a company without a record of positive income.
I don't see how an IPO of a company that's a massive net loss isn't fraud on retail investors.

 

[Vesperus]

You're all being very negative.
I'm sure lots of people want to own a % of a retarded troon coombox.

...wait...

...actually, if it includes access to the email address of the retarded fucks who brought reddit coins, it might be worth something.

My money is on Star Citizen getting a 5% stake.

 

[Pierre D'Olnique]

Does that mean someone would be able to buy plebbit and simply shut it down?

 

[BIG BILL HELL'S]

Of everything, I'm most annoyed that their ticker symbol isn't going to be SNOO, although that's probably because it's too close to the Snoogoo Corporation.

 

[Curzon Dax-sama]

Does that mean someone would be able to buy plebbit and simply shut it down?

I wouldn't shut it down. I'd do the same thing Musk has done with twatter: charge subscription fees for certain interactions on the site. There are enough soy consoomers out there that would pay me whatever I'm asking just to be extra special.

 

[Terrifik]

can't wait for the stock high-jinks of Reddit.
based took money said it was worth nothing, sold out to China, made $200 mil & they do it for free & updoots.

 

[tehpope]

Aaron Swartz is spinning in his grave lol.

So what's the right call here? Buy it at launch, wait for the brief spike in price and sell later that day, or short it at launch and lol as the price tanks a day later?

Probably the latter. But I'm an idiot online that knows nothing about puts and calls.

Turns out you have to disclose CEO salary in your IPO paperwork and Spez hauls in a kool $193 million a year.

Wait, really? How long has he been making $200 mil a year?