Ahead of its IPO next month, social media platform Reddit is planning to reward its loyal customers. Wondering how? Well,?the?social media giant intends to reserve and sell a portion of its IPO shares to users of the site.?
When it goes public next month through its IPO, Reddit intends to reserve an as-yet-undetermined number of shares for 75,000 of its most active "redditors," according to the report, which cited people familiar with the matter.
According to the Wall Street Journal report, users will have the chance to purchase Reddit shares before the stock begins trading, an opportunity that is typically only available to large investors.?Giving Reddit users, known as "Redditors," such preferential treatment in the IPO is unusual, because usually when companies offer stock for the first time, they sell the shares to investment funds and other groups who can invest millions or even billions, instead of individual investors.
When it goes for IPO in March 2024,?it would be the first IPO by a major social media platform since?Pinterest¡¯s?stock market debut in 2019. As far as Reddit's other competitors are concerned,?Meta (formerly Facebook) had launched its IPO in May 2012, whereas Snapchat's IPO came in March 2017.
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Reddit was founded in?2005?by Steve Huffman and Alexis Ohanian. It has become?best known?for its niche discussion groups and its users voting ¡°up¡± or ¡°down¡± on the content posted by fellow members.?San Francisco-based Reddit was last?valued at about $10 billion?in a funding round in 2021. It is planning to sell about 10% of its shares in the March 2024 IPO.
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