Connect with us

CBS News

Reddit to raise nearly $750 million in an IPO and offer shares to Redditors. Here’s how it will work.

Avatar

Published

on


Reddit said it’s aiming to raise $748 million in its initial public offering, which will also offer shares to the social media company’s users and moderators as a way to allow them to participate in the stock sale. 

In a regulatory filing on Monday, Reddit said it will sell about 22 million shares priced about $31 to $34 each. Based on its total number of shares outstanding, the transaction would value Reddit at $5.4 billion.

Reddit’s IPO, while typical for a tech company seeking to raise more money to fuel its expansion, is unusual in that it’s setting aside a significant number of shares to offer its own users. In the company’s filing, CEO Steve Huffman noted that the service was built on the efforts of its community, such as moderators and users, and that Reddit wants them to be able to participate in publicly owning the business.

“We hope going public will provide meaningful benefits to our community as well. Our users have a deep sense of ownership over the communities they create on Reddit,” Huffman wrote in a letter published in the filing. 


Stock market soars to record highs, fueled by AI optimism

02:09

He added, “We want this sense of ownership to be reflected in real ownership — for our users to be our owners. Becoming a public company makes this possible. With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors.”

Here’s what to know about Reddit’s IPO

Why is Reddit going public?

Reddit said it’s going public to fund its operations and potentially to expand, noting in the filing that it could use the proceeds for “strategic opportunities,” although for now the platform is not planning any investments or acquisitions.

Why is Reddit offering shares to “Redditors”?

Reddit said it is reserving 1.76 million shares, or 8% of the stock it’s selling in the IPO, to its Redditors, which is what it calls its users. 

The shares will be sold to Redditors, according to the filing. That’s unusual because companies going public typically reserve their IPO shares for big institutional investors, such as investment firms and banks. It’s very unusual for a company’s users to be included in a public stock sale. 

Which Redditors will be offered shares in the IPO?

Only certain Redditors will be given a chance to buy stock in the IPO, according to the filing. 

The company said it will invite some users and moderators to participate in the IPO in “six phased priority tiers.” Users will be invited based on their “karma,” which is their reputation score on the site. Moderators will be measured by their moderator actions, the filing said.

“If demand for the directed share program in an earlier tier exceeds capacity, eligible users and moderators will have the option to join a waitlist,” Reddit said. “An invitation to participate in the directed share program does not guarantee that the participant will receive an allocation of shares.” 

Additionally, users and moderators must have created an account before January 1, 2024, and reside in the U.S. and be at least 18 years old, the filing said. Current or former Reddit employees are excluded from the offer, it added.



Read the original article

Leave your vote

CBS News

Reporters’ notebook: A reflection on our return to Butler 84 days later

Avatar

Published

on


It was hard to miss the massive American flag towering over the Butler Farm Show ground on July 13 as it waved over the rally site where former President Donald Trump was set to speak, just days before a crucial running mate selection and the Republican National Convention.

On July 13, the two of us, who had been tag-teaming coverage of Trump’s third run for president for over a year, went to what we thought would be a typical Trump rally in an open field in a Pittsburgh suburb, a crucial electoral area in a crucial battleground state. It ended with a gunman trying to take Trump’s life, and the death of a fireman, Corey Comparatore

We stood front and center in the press area at 6 p.m. and Trump took the stage (an hour late, as can be the case) and knew right away that something wasn’t right when what sounded like firecrackers went off to our left. That’s where shooter Thomas Crooks had climbed up onto an unprotected building just outside of the security perimeter and fired multiple shots.

A hydraulic lift that held up a massive stack of speakers was struck, sending smoke shooting out and the speakers slowly fell towards the ground, and as we took cover (ground twice), all we could think was to pull out our phones and get to work. Olivia recorded the sounds of panicked journalists and attendees alike huddled along the press riser and bicycle racks separating us, the shrieks of scared children, and, realized only upon listening many times since, the sound of those around Corey Comperatore yelling for assistance.

Jake spoke with emergency room Dr. James Sweetland, who ran to help Comperatore, and said that he heard the gunshots and went to assist, finding Comperatore “jammed between the benches” before attempting to save his life.

We both stood in shock as the crowd turned on us in the moments after Trump’s motorcade sped out of Butler, with one man yelling “This is your fault!”

What was to be a typical Trump rally wasn’t so typical anymore.

Eighty-four days later Trump returned, and so did the two of us, taking the same route from downtown Pittsburgh, parking in the same location, and enduring a similar heat with no shade in the press pen alongside fellow reporters who, just like us and the former president, chose to return and confront our trauma.

The stage was set up in the same location, with that same American flag looming over Trump and the crowd behind him on that day. 

But for everything that was the same that day, there were striking differences. The building where the gunman had climbed up, crawled across, and ultimately fired fatal shots, was completely obstructed from the view of the crowd by tractor trailers. Several teams of snipers were stationed throughout the rally site. It was perhaps the largest crowd we have seen thus far at a Trump rally. 

And we are not the same people. Witnessing the events of July 13 took away our feeling of safety while doing our jobs, and the effects of that continue to impact us. There was a moment of shock at one point, when the speaker on stage paused as the crowd shouted “medic” for a woman who fainted. We were frozen in fear hearing the same words that were shouted in the seconds after Trump’s assassination attempt, as people were shouting for a medic to take care of Comperatore. 

But like July 13, we had to go to work. Like those in the crowd of tens of thousands that chose to return, there was a sense of unfinished business on this fairground. We had continued on to Milwaukeee and the Republican National Convention to cover Trump’s first public appearance since Butler, but we knew that we had to come back here, no matter how painful it was to land back in Pittsburgh, head north on Route 79 and pull off at the Butler Farm Show, and finish the job: for the two of us, for CBS News, for the country. 

Unlike other speakers on the stage Saturday who championed Trump’s words of “fight, fight, fight,” Sweetland went out of his way to mention he is a former Democrat and pleaded with the crowd to reach out and find five Democrats with whom they could find commonality. 

“Democrats are like teenagers,” Sweetland said. “You think they aren’t listening, but they are.” 

Eight-four days later, the entire race has changed, and so have we. 



Read the original article

Leave your vote

Continue Reading

CBS News

Jewish communities on high alert ahead of one-year mark of Oct. 7

Avatar

Published

on


Jewish communities on high alert ahead of one-year mark of Oct. 7 – CBS News


Watch CBS News



Ahead of the anniversary of the Oct. 7 Hamas attack, Temple Beth Abraham in Oakland, California, has increased security and added additional support from the city’s police department. Itay Hod reports.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Recalling the Oct. 7 massacre nearly one year on

Avatar

Published

on


Recalling the Oct. 7 massacre nearly one year on – CBS News


Watch CBS News



For all the turmoil, suffering and heartbreaking loss of human life that has unfolded since, the Oct. 7 massacre nearly one year ago is when it began, when heavily armed Hamas gunmen slaughtered about 1,200 people in Israel. Charlie D’Agata, who has reported extensively on the attack and the war in Gaza that followed, recalls the massacre and the escalating regional conflict.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.