Why is Reddit IPO On Hold Now

Wondering why Reddit IPO is on hold now ? Social media giant Reddit disclosed plans to IPO in 2022- has the current turn of events put the news on hold? Or will it still go ahead? 

It seems like the IPO investing is not actually what the market needs right now, but what really is going on with IPO Reddit?

Maybe social media guru Reddit, is waiting for the fire to Kindle before jumping in. Reports has it that Reddit is asking a $15billion valuation if it finally arrives.

The two largest investment bank in the world, Morgan Stanley and Goldman Sachs, have advised that before diving in it will have a close advisory on the right capital raise strategy.

Reddit on the other hand received $700 million in a separate private funding round just last September at a $10billion valuation.

How does Reddit make money now that the IPO is on the hold?

The company makes money from 

  • Advertisement
  • Subscription
  • Award currency purchase

In conclusion,

with the recent news cycle, it won’t be surprising if Reddit usage is high. Also watch out for updates on IPO of the year.

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