In brief: Reddit is reportedly looking to hire investment bankers and lawyers in preparation for an initial public offering. Sources familiar with the matter told Reuters that the social news aggregator is aiming to go public in early 2022, although the exact timing and size of the IPO could ultimately be decided by market conditions.
Reddit in recent months has managed to cash in on its increasing influence in the financial world. Last month, the company closed a private funding round valued at $10 billion that was led by Fidelity Management. According to one source, Reddit believes it could be worth more than $15 billion by the time the IPO rolls around.
Reddit was founded in 2005 by Steve Huffman and Alexis Ohanian as a social news aggregator in the image of Digg.
The Internet's darling at the time, Digg could do no wrong - until it did. A major redesign in 2010 was the straw that broke the camel's back for many loyal users, prompting them to defect to rival Reddit. Digg only went downhill from there. In 2018, the company was sold to an ad-tech firm.
Of course, Reddit has experienced its own missteps over the years. Things started looking up earlier this year, however, when retail investors flocked to the site for tips on meme stock trading.
According to Reuters, Reddit generated around $100 million in advertising revenue during Q2. That's nearly three times as much compared to the year-ago period.