Reddit Goes Public in $6.4 Billion IPO Despite History of Losses

Reddit priced its shares at $34 each in its initial public offering, valuing the company at $6.4 billion. It's the largest IPO by a social media company in years.

Reddit aims to raise $748 million by selling 22 million shares. The offering was 4-5 times oversubscribed, showing strong investor demand.

Reddit has posted net losses every year since 2005, including losing $90.8 million in 2021, but has 267 million weekly users making it one of the largest social networks.

The IPO comes as Reddit seeks new revenue amid efforts to cut losses, including a deal to let Google access Reddit data to train AI models.

A small portion of Reddit's IPO shares were reserved for users, including unpaid moderators, who could sell immediately rather than hold.