We've Got Hollywood Covered
|

Reddit to Raise Up to $700 Million at a Company Valuation of ‘Over $10 Billion’

Fidelity Management and Research Company LLC upvotes that

Reddit did wonders for GameStop and AMC Entertainment stocks during the throws of the COVID-19 pandemic, and now the website is raising (even more) massive amounts of capital for itself.

In a Thursday blog post, Reddit said it will “raise up to $700 million” in the company’s Series F funding, which is being led by Fidelity Management and Research Company LLC. The latest round also includes other previously existing investors.

That capital is based on a post-money company valuation of “over $10 billion,” Reddit said. Yeah, that’s “10” with a “10” and “billion” with a “B.”

“We are making strategic investments to grow Reddit and our business, including expanding internationally, innovating new ways to foster community, and bolstering our advertising offerings and capabilities,” the blog post read. “These efforts require us to grow our teams and make smart bets on how to make Reddit better, faster, easier to use, and more empowering for communities.”

The blog post stated that Reddit is “evolving as a business, maturing, and building the operational structures that will help propel us into the future with transparency, values, and integrity.”

As part of its evolution, Reddit hired its first chief financial officer and has expanded to the UK, Canada and Australia. In the recently wrapped second quarter of 2021, Reddit had its first $100 million advertising revenue quarter, the privately held company wrote, which represented a +192% jump from the comparable three-month period in 2020.

So what does the future of Reddit look (and sound) like?

“We are investing in our products and diversifying the Reddit experience to include new ways for communities to connect through video and audio,” the company wrote.

The blog post concluded: “We are committed to our mission of providing community and belonging to everyone and look forward to continuing on our journey with the support of our users, employees, clients, and investors.”