Insider Claims Reddit Seeks a Valuation as High as $6.5 Billion in Its IPO

Reddit is targeting a valuation of up to $6.5 billion in its upcoming initial public offering (IPO), according to two individuals familiar with the situation, as reported by Reuters on Friday, March 1. This anticipated valuation is significantly lower than its $10 billion valuation from a 2021 funding round, indicating a shift in market expectations.

The social media platform, which has carved out a unique space for itself with user-driven content and niche discussion forums, is considering a share price range of $31 to $34 for the IPO. This detail comes from sources close to the matter, although Reddit has not publicly commented on these reports.

The IPO will consist of both new shares issued by the company and existing shares currently held by investors and employees, as revealed by one of the sources. This move is part of Reddit’s strategy to capitalize on its community-driven model, where users have the power to vote content up or down, contributing to the platform’s vibrant and diverse discussions.


In its journey towards the IPO, Reddit, established almost two decades ago, disclosed last month that its net loss had decreased to $90.8 million and that it had achieved a revenue growth of approximately 21% in 2023. These financial disclosures were part of Reddit’s IPO filing, which was made public last week, marking a significant milestone for the company that has yet to match the commercial achievements of other social media giants like Facebook and Twitter, now called X.

Reddit’s approach to going public, selling about 10% of its shares according to a previous report by Reuters in January, is a crucial step for the platform. It represents an important test of investor confidence and market positioning, especially in comparison to its more commercially successful peers in the social media landscape.

author avatar
Staff Report

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use