Yesterday we said that on Reddit they had reached an agreement to sell all the content of their forum, created by millions of platform users, to the giant Google. The goal of the agreement is to earn 60 million per year while Google trains its AI.
Back in December 2021, the popular forum Reddit announced that it had plans to launch an initial public offering and become a publicly traded company. Now, over two years later, it seems that plan is finally going to happen very soon.
In a new presentation today before the US Securities and Exchange Commission, Reddit revealed its current financial number, along with the number of users that the online forum currently has. This means that the IPO could happen at any time. When it does, Reddit’s shares will be sold, bought, and traded on the New York Stock Exchange under the symbol “RDDT”.
These are the daily and monthly active users that Reddit has
The request indicates that Reddit currently has 267.5 million weekly active users and about 73 million daily users. In a separate announcement from Google, it was revealed that the company now has access to Reddit’s data API.
This means that Google’s artificial intelligence models will be able to be trained using the content of Reddit posts. Although neither Google nor Reddit have revealed the financial details, Reuters reports that Google will pay Reddit $60 million per year for this agreement.
Reddit also revealed that it generated $804 million in revenue in 2023, and that 98 percent of that money came from advertising. However, it also revealed that it is still not profitable, as it lost $90.8 million last year.
In 2023, Reddit also revealed that it would start charging most developers for access to its API. This caused a great reaction from many Reddit users. Some of its most popular subreddits “went dark” for a while to protest the changes in the API.
In today’s presentation, Reddit has indicated that it will try to monetize its data in different ways and generate revenue from commercial solutions, in addition to advertising.
Another interesting thing that Reddit says it’s going to do is give its top moderators, along with users with the highest karma scores, an invitation to buy company shares.
