Reddit Prepares for IPO with $6.5 Billion Valuation Despite No Profits

The social media platform aims to raise up to $748 million through its public offering, targeting a valuation of $6.5 billion, as it faces user backlash and relies heavily on new deals for revenue.

Reddit is gearing up for an IPO, aiming for a valuation of about $6.5 billion, despite never having made a profit in its nearly 20-year history.
The company plans to offer 22 million shares, pricing them between $31 and $34, with the aim of raising as much as $748 million.
A significant deal with Google to use Reddit's content for AI model training represents a new revenue stream amidst ongoing controversies, including backlash for charging for API access.
Reddit's user growth may be stalling, with over 500 million monthly visitors but no increase reported in nearly three years.
The company's reliance on Google for traffic and the launch of Reddit Pro for businesses are seen as crucial strategies moving forward.