San Francisco, California – Reddit, the popular social media platform, is gearing up to make its stock market debut on the New York Stock Exchange in March. The company’s CEO, Sam Altman, is set to reap substantial financial gains from Reddit’s upcoming initial public offering (IPO).
Altman, who currently serves as the CEO of OpenAI, a prominent artificial intelligence research lab, has a significant stake in Reddit. As the platform’s third-largest shareholder, Altman owns 4.5% of its Class A shares and 9.3% of Class B shares, giving him a 9.2% voting power ahead of the IPO.
With a long history of involvement with Reddit, Altman previously invested in the company while heading the tech startup accelerator Y Combinator. He also briefly held the position of CEO at Reddit in 2014.
Under Altman’s leadership, OpenAI gained global recognition following the release of ChatGPT in November 2022, solidifying its position in the competitive artificial intelligence landscape.
The exact valuation that Reddit aims to achieve through its IPO remains uncertain, although the company was valued at $10 billion in a funding round in 2021. Reports suggest that Reddit will offer nearly 10% of its shares in the upcoming public offering.
Altman’s investments in Reddit, totaling at least $60 million over the years, indicate his confidence in the platform’s growth potential. His position as a significant shareholder promises substantial returns once Reddit goes public.
Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has garnered support from prominent investors, including venture capital firm Andreessen Horowitz and Chinese tech giant Tencent Holdings. With Tencent holding the second-largest stake in Reddit, behind the Newhouse family’s Advance Magazine Publishers, the platform’s market debut is highly anticipated in the financial world.
As Reddit prepares for its IPO, stakeholders are closely monitoring the company’s valuation and market performance. The inclusion of Altman as a key player in Reddit’s journey underscores the platform’s evolution from a startup to a formidable player in the social media landscape.