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to be reddit Users have always had perks, but now the most loyal Redditors will get a VIP pass to own a piece of the company. According to some information, Reddit has revealed plans to launch its long-awaited IPO with a valuation of up to $6.4 billion. Filed with SEC on Mondayand the company reserves 8% of its shares for long-time members of the online platform.
“Our users have a deep sense of ownership in the communities they create on Reddit,” the company said. filing. “We want this sense of ownership to translate into actual ownership, where the user is the owner.”
To be clear, you do have to buy stock in the company, but there may be special perks. Reddit plans to sell 22 million shares of the company’s stock at prices between $31 and $34 per share. This is one of his most anticipated social media IPOs since Pinterest went public in 2019. Reddit’s IPO generated a lot of hype. Because Reddit is one of the largest online platforms in the world. Over 1 billion monthly active users.According to Axios.
Approximately 1.8 million shares are reserved for Reddit users and moderators who created accounts before January 1, 2024. To be eligible, you must be a U.S. resident and he must be 18 years of age or older. The Reddit user will then rank his six points based on the following criteria: Karma score that measures moderator actions and contributions to the community. The higher the score, the higher the priority on Reddit’s IPO day. Reddit will let you know if you qualify for the level.
Tier 1 will be a “significant contributor” to Reddit’s community programs. Tier 2 are users with mods with over 200,000 karma and over 5,000 moderator actions. Tier 3 will be users with mods with over 1,000 Karma and over 2,500 Actions. Tier 4 cutoff is 50,000 Karma and 1,000 Actions mod, and Tier 5 is 25,000 Karma and 500 Actions mod. At Tier 6, he is every other Reddit user, but he may not have any shares left at that point.
One special privilege available only to Reddit users, and not available to anyone else, is the ability to sell stock on the day of Reddit’s IPO. Other shareholders must hold onto their shares for the day, but this group of loyal readers is not subject to a “lock-up” agreement. There has already been speculation that Reddit’s stock price could fluctuate wildly, with some even calling the company a potential meme stock.
Registered on Reddit r/WallStreetBets as a risk factor in previous IPO filings, noted that the subreddit could cause “extreme volatility for reasons unrelated to our fundamental business.” This community of non-traditional investors will now have the opportunity to own a piece of the platform.
So how does Reddit make money as a public company? The company cites advertising, AI licenses, and the user economy as three main ways it generates returns for investors. Reddit recently $60 million deal to allow Google to scrape online communities In terms of content, it looks like there’s a lot more coming.
Reddit’s IPO is bound to be a bumpy one, and the stock will likely sell quickly due to the huge amount of interest around the company. If you’re interested in acquiring a piece of a company, you’ll want to make sure you’re ready by IPO day.
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