Anyone trying to buy Reddit would need to basically lowball the hell out of them and make the case that an IPO will only be worse (which may or may not be true).
Even if they IPO, wouldn’t the stock immediately crash if it’s overvalued?
Yes, this is effectively guaranteed at this point. The hope of the investors is presumably that they will be able to sell fast and early.
It doesn't sound right. It last raised money at $10B in 2021, but Fidelity, who led that round have since cut that valuation on their own books back to $6B.
I would not be surprised if that is a conservative number.
The market has moved and reddit hasn't been going in the right direction.
While that's still a lot of money, it is unprofitable, so a trade sale would make some sense. The real issue is that it comes with a lot of reputational baggage that a lot of public companies would not want.
That said, I also don't think they're willing to accept the idea that even $6B might be high, so I don't think anyone would be successful with a meaningfully lower offer.