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Reddit IPO: Shares Pop in Debut, Internet Company Nets $519 Million
Investors rallied around Reddit's initial public offering Thursday, driving the stock up over 60% in its market debut.
Through the IPO — expected to be among the biggest tech stock offerings of the year — Reddit raised $519 million and created a windfall for existing shareholders, including Condé Nast parent company Advance Publications and OpenAI CEO Sam Altman. Reddit, the 19-year-old company once billed as “the front page of the internet,” said it plans to use the net proceeds from the IPO for general corporate purposes as well as potentially to “in-license, acquire or invest in complementary technologies, assets or intellectual property.” In addition to ad revenue, Reddit is monetizing the posts on its platform through AI data-licensing deals inked in January 2024, which it disclosed will total $203 million with terms ranging from 2-3 years.
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