Reddit IPO valuation: Reddit, the prominent media platform, is targeting a valuation of up to $6.5 billion in its forthcoming initial public offering (IPO), news agency Reuters reported quoting two individuals familiar with the matter. This valuation marks a significant decrease from its previous valuation a few years ago.

According to the report, Reddit is contemplating a price range of $31 to $34 per share.

Reddit declined to provide a comment on media queries.

It is revealed that a portion of the shares offered in the IPO will comprise newly issued shares by Reddit, while the remainder will consist of existing shares held by its investors and employees, as disclosed by one of the sources mentioned in the report.

In 2021, Reddit had achieved a valuation of $10 billion during a funding round. Earlier reports from Reuters in January indicated that the company was aiming to sell approximately 10 per cent of its shares in the IPO.

Renowned for its specialised discussion communities and its unique system of user-driven content evaluation, Reddit disclosed last month that its net loss had diminished to $90.8 million, with revenue experiencing a growth rate of approximately 21 per cent throughout 2023.

The public filing for Reddit's IPO was unveiled last week, marking a significant milestone nearly two decades after the platform's inception. This IPO is poised to be a pivotal moment for Reddit, serving as a litmus test for its commercial viability amid comparisons to more commercially successful social media counterparts such as Facebook and Twitter, now rebranded as X.

(With Reuters inputs.)