Reddit considers IPO, hires CFO
Reddit founder Steve Huffman hints at IPO
Reddit has been in the middle of the trading frenzy roiling heavily shorted stocks, now the social media platform may roll the dice on the financial markets themselves.
On Friday the company named Andrew "Drew" Vollero as its new chief financial officer as it reportedly mulls an initial public offering.
Vollero, 55, was the first CFO of Snap Inc, where he helped lead the social media company's IPO. He previously served as CFO of Allied Universal, the country's largest security and facility services firm.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNAP | SNAP INC. | 11.16 | -0.47 | -4.04% |
“Drew is an industry thought leader, who brings a track record of building a global finance organization for high growth companies," Steve Huffman, co-founder and CEO of Reddit, said in a statement to FOX Business. "He will be a tremendous addition to our Executive Team, as Reddit continues accelerating our business and user growth."
SEC FLEXES MUSCLE AS REDDIT TRADING FRENZY CONTINUES
Reddit Head of Policy, Safety, and Corporate Communications Sandra Chu also told FOX Business that "when the time is right, becoming a public company is a possibility for Reddit."
"Reddit is experiencing great momentum, both in terms of hiring and shipping the most product we ever have," Chu said. "Right now, the company is focused on maintaining that positive growth and ensuring we’re helping our users create and maintain healthy communities and providing effective advertising solutions for brands."
GAMESTOP CFO RESIGNS FOLLOWING REDDIT STOCK TRADING MANIA
Huffman, one of the co-founders along with Alexia Ohanian who is married to Serena Williams, told the New York Times in an interview published Friday that the company is considering going public but did not share a timeline.
"We’re thinking about it. We’re working toward that moment," he told the outlet.
CLICK HERE TO READ MORE ON FOX BUSINESS
The announcement comes nearly a month after Reddit announced that it had raised more than $250 million in Series E funding, bringing its total valuation to $6 billion.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RKT | ROCKET COMPANIES INC. | 11.68 | +0.15 | +1.30% |
| SKT | TANGER INC. | 26.67 | -0.16 | -0.60% |
| GME | GAMESTOP CORP. | 10.42 | +0.11 | +1.07% |
| AMC | AMC ENTERTAINMENT | 3.16 | +0.23 | +7.89% |
| BBBY | n.a. | n.a. | n.a. | n.a. |
An IPO would come as the Reddit forum "WallStreetBets" continues to stoke extreme trading in heavily shorted stocks, those that investors bet will fall. Rocket and Tanger Factory Outlets have joined GameStop, AMC Entertainment, Bed Bath & Beyond and others, as short-seller targets.