Sarah Kunst, managing director at Creo Capital, talks about Reddit’s “unusual” IPO and Encyclopedia Britannica seeking $1 billion IPO valuation in “How to Make Money.”
Reddit, best known for hosting forums where users can share, discuss and vote on content, received a warm welcome on Wall Street.
The stock, which trades on the New York Stock Exchange under the ticker RDDT, rose 60% after hitting the high end of its expected range at $34. This reception is a positive indicator for the social media sector, where IPOs have been slow.
It was founded in 2005 by web developer Steve Huffman and his tennis champion husband, entrepreneur Alexis Ohanian. serena williamsReddit is backed by several big-name investors, from venture capital giant Andreessen Horowitz to Chinese tech giant Tencent Holdings.
BEVERLY HILLS, CA – MARCH 27: Alexis Ohanian and Serena Williams attend the 2022 Vanity Fair Oscar Party hosted by Radhika Jones at the Wallis Annenberg Performing Arts Center on March 27, 2022 in Beverly Hills, California Attended. (Photo courtesy of Lion
Huffman, who faced backlash from users over his $193 million compensation package, defended his compensation earlier this week.
Reddit CEO Steve Huffman attended Variety & Reddit An Evening With Future Makers at Wynn Las Vegas on January 5, 2023 in Las Vegas, Nevada. (Photo by Greg Doherty/Variety via Getty Images / Getty Images)
“I’m glad to be able to ask this question because there’s been a lot of commentary on this topic,” Huffman said in a Q&A video on the platform ahead of the IPO. “The way my compensation works is I have salary and stock. The board evaluates my performance and sets my compensation.” He also has an extensive vesting schedule and performance-linked compensation. He also explained the awards he received.
The company has lost money every year since its founding and has struggled to match the commercial success of its rivals, including some of the world’s top tech giants.
RedDit CEO defends big payday
As stated in the prospectus filed in the US, “Google, Meta (including Facebook, Instagram, Threads, WhatsApp), YouTube, Wikipedia, Snap, X, Pinterest, TikTok, Roblox, Discord, Twitch” All are rivals. Securities and Exchange Commission.
Reddit’s public debut could mean huge profits for OPENAI CEO Sam Altman
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Alphabet Co., Ltd. | 148.74 | +1.71 | +1.16% | |
| Meta | Meta Platforms Co., Ltd. | 505.52 | +9.28 | +1.87% |
| snap | Snap Co., Ltd. | 11.20 | +0.15 | +1.36% |
| pin | Pinterest Co., Ltd. | 34.30 | +0.41 | +1.20% |
| RBLX | Roblox Co., Ltd. | 38.34 | +0.52 | +1.36% |
Some advertisers have balked at the platform’s approach and the niche content focus of many Reddit users. content moderation. The platform relies on its users to self-moderate the content posted on Reddit forums.
FOX Business’ Eric Revell and Breck Dumas contributed to this report.
