Reddit, Social media platform file to become public

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Reddit, a social media platform has begun the selling of its stock on the stock exchange.

It did not disclose the number of shares or price in a confidential filing.

In August, the company said it had raised $700m (£528m) in new funding, valuing it at more than $10bn.

Reddit was the hub of so-called “memestock” earlier in the year.

Reddit, in a filing filed with the US Securities and Exchange Commission stated that the initial public offering would occur once the SEC has completed its review. This is subject to market and other conditions.

Investors have flocked to San Francisco’s firm’s messaging boards earlier in the year for advice on trading stocks. This includes the US video game retailer GameStop, and AMC Cinema chain. Also known as “meme stock”, these stocks gain popularity from sites such Reddit.

Popular stocks were those that were heavily bet against them by professionals such as hedge funds.

These shares were subject to sharp price fluctuations in volatile markets, which led to some seeing their values rise or fall.

Steve Huffman, Reddit’s cofounder and chief executive, told The New York Times in August that Reddit “still plans on going public”, but did not have an exact timeline. He added, “All great companies should go public whenever they can.”

According to the Reuters newswire, the company looked at a valuation exceeding $15 billion the month after that.

Reddit was established in 2005 and had 52 million users per day as of August 2012.

In a statement earlier in the year, the company stated that its goal was to increase the number of employees by approximately 1,400 to 2,021 by 2021.

Reddit has three of the largest financial backers: Fidelity Investments, Sequoia Capital and Tencent in China.

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