Investors are eagerly waiting for the anticipated Reddit IPO. Co-founder Steve Huffman recently announced that the company has plans to go public at some point. So, what’s the latest news…
on the anticipated Reddit IPO? Here’s what we know…
University of Virginia roommates Steve Huffman and Alexis Ohanion founded Reddit in 2005. The two wanted to build an app that could allow users to order sandwiches online. They exchanged ideas with Y Combinator in hopes that the seed funding incubator would back the idea.
The idea was shut down by Y Combinator partner Dr. Paul Graham. In 2005, apps weren’t mainstream – the idea was viewed as unrealistic. Nevertheless, Paul took an interest in the roommates and proposed a bulletin board-style platform for news-related information. The idea inspired Reddit (“Read It”) and the idea soon became a reality.
Reddit was bought by Condé Nast in October 2006 for $10 million. As part of a contract, Huffman and Ohanion worked with Reddit until 2009. In late 2011, Reddit became an independent subsidiary of Advance Publications, the parent company of Condé Nast. After going their separate ways, Huffman and Ohanion returned to Reddit 2015. Huffman was appointed CEO, while Ohanion was reappointed Executive Chairman.
“The Front Page of The Internet”
Today, Reddit is made up of a massive collection of forums. Users, called Redditors, can share opinions, news and debates with one another. Posts are open to the entire Reddit community to vote upon, either by up- or downvotes. There are over 130,000 different sub forums and communities referred to as subreddits. They cover almost any topic you can imagine… from stocks to public freakouts to specific video games. If you can think of it, there’s probably a subreddit for it.
In the last few months, subreddit communities like r/WallStreetBets have risen in both popularity and controversy. Reddit has made headlines for its involvement in the rise in price (and subsequent steep fall) of various stocks like GameStop, Bed Bath & Beyond and meme stocks.
The platform claims to be the “front page of the internet.” And it’s not far off – if you’ve searched the internet for answers on any subject, there’s a chance you’ve found your answer on Reddit. Users have a history of being able to detect trends and news before anyone else. With millions of users, a popular post can become the next internet – or stock market – phenomenon.
Company Growth Hints at Eventual Reddit IPO
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