During a leadership crisis in 2015, Reddit requested Steve Huffman, one of its founders, to return to manage the social media platform. Mr. Huffman, who was occupied with a travel site, initially hesitated to take on the role. Reddit was facing numerous challenges, including constant changes in chief executives, conflicts between its user community and management, complex ownership, and outdated technology. “I ran into the burning building,” Mr. Huffman stated in a 2017 podcast recounting his comeback.
Reddit is set to go public this month in one of the first tech initial public offerings of the year, a notable move as it differs from recent start-ups focused on artificial intelligence. Established 19 years ago, Reddit resembles an earlier era of social media and is venturing into the stock market at a time when tech offerings are viewed skeptically by investors. The company managed to survive despite numerous obstacles, making significant revenue and employment growth under Mr. Huffman’s leadership.
As Reddit prepares for its public offering and aims to raise up to $748 million, it faces doubts and concerns from potential investors. The company’s valuation is expected to be around $6.4 billion, lower than its previous private round valuation of $10 billion in 2021. Skepticism about the I.P.O. was evident in the WallStreetBets community on Reddit, where users questioned Reddit’s ability to monetize its user base and data.
Founded by Mr. Huffman and Alexis Ohanian in 2005, Reddit has evolved into a platform of over 73 million daily users, organized into various text-based forums known as “subreddits.” The company’s early struggles with revenue generation, advertising, and content moderation have been overcome in recent years through the implementation of new policies and the introduction of new executives.
Despite facing challenges and controversies over the years, Reddit has managed to revitalize its business and prepare for a successful public offering. Former employees are looking forward to the company’s transition to a publicly traded entity, enabling them to benefit from their hard work and dedication over the years.
