Reddit IPO values social media site at $6.4 billion

The 19-year-old company has never turned a profit

(Image credit: Jonathan Raa / NurPhoto via Getty Images)

What happened

Reddit is making its debut as a public company Thursday on the New York Stock Exchange, under the ticker symbol RDDT. The social media platform priced its shares at $34 on Wednesday, the top of its IPO target range, valuing the company at $6.5 billion. The 19-year-old company has never turned a profit.

The commentary

Reddit's healthy market debut "stems largely from a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries," The Associated Press said. But its loyal users and volunteer moderators have been "perhaps Reddit's biggest obstacle to a smooth IPO," The New York Times said. Some of them worry subjecting Reddit to "market forces and the quarterly demands of shareholders" will destroy the beloved site, and some plan to short the company.

What next?

The Newhouse family, which owns Condé Nast and purchased Reddit for $10 million in 2006 before spinning it off, will "reap a windfall of roughly $1.4 billion," the Times said. And Reddit will have money to finance its ambitions and try to pull in revenue.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.