FT News Briefing Reddit hits the road ahead of IPO
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Mar 12, 2024 Reddit is gearing up for a massive IPO, aiming to raise over $500 million amidst financial hurdles and concerns about competition from AI. This offering could influence start-ups looking to go public in 2024. Meanwhile, the EU is working to provide up to €3 billion in aid for Ukraine from frozen Russian assets. The podcast also sheds light on the dire humanitarian situation in Gaza, discussing innovative plans, like a floating pier, to enhance aid delivery and avert famine amidst ongoing challenges.
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Reddit's IPO Valuation
- Reddit aims to raise over $500 million in its IPO, valuing the company between $5.8 and $6.4 billion.
- This is lower than its 2021 private valuation of $10 billion.
Reddit's Financial Performance
- Despite a 19-year history of unprofitability, Reddit seeks to go public.
- In 2023, they recorded $91 million in losses with $800 million in sales, primarily from advertising.
Investor Concerns about Reddit's IPO
- Investors are concerned about the impact of AI, adult content, and potential market manipulation by Reddit users.
- These factors could influence the success of Reddit's IPO.