Media platform Reddit is eyeing a valuation of up to $6.5 billion in its initial public offering, two people with the matter told Reuters on Friday, far less than what it was worth a few years ago.
The company is looking to set a price range of $31-$34 per share, the sources said.
Reddit declined a Reuters request for comment.
Some of the shares sold in the IPO will be new shares issued by Reddit, and some will be existing shares held by its investors and employees, one of the sources said.
Reddit was valued at $10 billion in a funding round in 2021. The company had been seeking to sell about 10% of its shares in the IPO, Reuters reported in January.
The company, best known for its niche discussion groups and its users voting "up" or "down" on the content posted by other members, last month disclosed that its net loss narrowed to $90.8 million and revenue growth was roughly 21% in 2023.
Reddit's IPO filing was made public last week, almost two decades after Reddit's launch and would be a major test for the platform that still lags the commercial success of social media contemporaries such as Facebook and Twitter, now known as X.
