Social media giant Reddit is preparing for its IPO scheduled for March 21st. The company is looking to raise $748 million and is targeting a valuation of up to $6.4 billion, with a price per share of between $31 and $34. The company plans to allocate nearly 2 million shares to its active users.
Kyle Stanford, Senior Venture Analyst at PitchBook, talks to Yahoo Finance about Reddit's upcoming IPO and user enthusiasm for possible investments.
Compared to other tech companies, Stanford explains that Reddit takes an idiosyncratic approach to engaging its users: “[Reddit] was built from its communities. So if you turn your back on that, it creates a very negative perception among users that you're selling their information or data and generating all these discussion forums and giving them a reason to increase advertising revenue.”
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Editor's Note: This article was written by Nicholas Jacobino
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