Posted 3/11/2024, 6:51:15 PM
Reddit Plans $5 Billion IPO, Seeing Value in AI Data Licensing
- Reddit plans to IPO with a share price of $31-34 per share, valuing the company at $4.93B-$5.4B
- At that valuation, Reddit would trade at a revenue multiple of 6.9x-8x its 2023 revenue forecast of $804M
- That seems expensive compared to other social media firms, but Reddit's AI data licensing deals justify a higher multiple
- Reddit signed $203M in AI data licensing contracts, proving the value of its data trove
- Investors may see Reddit as a way to invest in AI given its vast data that can train AI models