Reddit CFO appointment fuels IPO speculation
Speculation that internet forum site Reddit could be moving towards an initial public offering (IPO) has been heightened after the company recruited former Snap Inc (NYSE:SNAP) executive Drew Vollero as its first ever chief financial officer.
The company, which boasts over 52mln daily active users on its platform, has been thrust into the spotlight in recent months as one of its forums, r/wallstreetbets, was credited with sparking the retail trading frenzy in shares of video game retailer GameStop Corp (NYSE:GME) which resulted in soaring share prices of a number of companies that were deemed to have been targeted by institutional short sellers.
READ: Reddit co-founder says he was ideologically on same wavelength as WallStreetBets GameStop traders
Aside from the CFO appointment, Reddit also revealed last month that it had raised over US$250mln in a funding round from new and existing investors, effectively doubling its valuation to around US$6bn.
The company has also said it is planning to double the size of its workforce, yet another indicator that it may be expanding its operations in preparation for an IPO.
Reddit’s chief executive, Steve Huffman, has also confirmed that the company is considering a float, telling the New York Times last Friday that the firm is “thinking about it” but did not give a timeline.