Reddit IPO valuation has dropped to $6.5 billion, nearly halved compared to its peak in 2021.

According to sources, the media platform Reddit's planned initial public offering (IPO) valuation could reach as high as $6.5 billion, much lower than its valuation from a few years ago. The source mentioned that the social media company plans to have an IPO price range of $31-34 per share, with a fully diluted valuation of approximately $6 billion to $6.5 billion based on this price range. Reddit has not commented on this. It is understood that part of the shares sold in the IPO will be newly issued stocks by Reddit, while the other part will be existing shares held by its investors and employees. Previously, in a financing round in 2021, Reddit's valuation reached $10 billion. According to reports from January this year, the company has been seeking to sell about 10% of its shares in the IPO. According to documents submitted by Reddit to the US Securities and Exchange Commission, Morgan Stanley, Goldman Sachs, JPMorgan, and Bank of America are the lead underwriters. Sources mentioned that details such as the size and timing of the IPO may change. Morgan Stanley, Goldman Sachs, JPMorgan, and Bank of America representatives declined to comment. It is worth noting that Reddit's IPO filing was made public last week, nearly twenty years after its founding. This will be a significant test as the platform still lags behind in terms of commercial success compared to products like Facebook and Twitter. Reddit is known for its niche discussion groups and users' ability to "upvote" or "downvote" content posted by other members. Last month, the company disclosed that its net loss had narrowed to $90.8 million, with revenue expected to grow by about 21% in 2023.