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Reddit Hasn’t Turned A Profit In Nearly 20 Years, But It Just Filed To Go Public Anyway

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Reddit, the discussion board site noted for its constantly online user base and for sparking much internet debate, filed for its long-awaited initial public offering on Thursday.

This would make Reddit the first social media business to go public since Snapchat in 2017. The offering will include a twist that may allow some of the most ardent of its more than 70 million daily users to purchase shares in the IPO — something generally reserved for institutional investors.

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Reddit Hasn’t Turned A Profit In Nearly 20 Years, But It Just Filed To Go Public Anyway

The company  claimed that top users can buy shares based on their “karma,” a term the network uses to describe its users’ contributions and reputation on the website.

“Our users feel a strong feeling of ownership over the communities they form on Reddit. We want this sense of ownership to translate into real ownership — for our users to be our owners’, co-founder and CEO Steve Huffman wrote in a Thursday filing letter. “Becoming a public company makes this possible.”

The company’s registration comes amid a dip in the overall IPO market, with Wall Street hoping that a blockbuster offering will help revitalise dealmaking.

According to a Securities and Exchange Commission filing, the San Francisco-based company plans to list on the New York Stock Exchange under the “RDDT.” The filing comes nearly three years after Reddit recruited its first CFO, and officials, including co-founder and CEO Steve Huffman, began publicly discussing the potential of an IPO to raise the company’s visibility.

Reddit, which has not been profitable, plans to expand its revenue through advertising, offering more e-commerce options, and licensing its data to other companies to train their artificial intelligence models.

“Our work to make Reddit faster, easier to use, easier to moderate and govern, and simpler to navigate and find relevant communities is driving growth today and will continue to be our focus into the future,” Ms. Huffman said.

The company was sold to media giant Condé Nast in 2006 by its co-founders Alexis Ohanian, who left the company in 2020, and Huffman, who now owns 3.3%. According to the IPO filing, the company’s top shareholders are currently Advance Publications (30.1%), which owns Condé Nast, Tencent (11%) from China, and OpenAI CEO Sam Altman (8.7%).

History of the ‘Front Page of the Internet’
The company, dubbed the “front page of the internet,” is a social media veteran; the firm was founded in 2005, the year college buddies Huffman and Ohanian graduated from the University of Virginia. It was the same year that Facebook became Facebook, YouTube released its first video, and Twitter (now known as X) launched.

Reddit’s 18-year history as an online social hub has witnessed tremendous growth, occasional controversy, and sometimes market-shifting pranks.

The network is well-known for its “subreddits,” which are distinct, user-generated discussion boards where users establish communities around various topics ranging from sports to politics to religion and everything in between. the company  users frequently post anonymously in these areas, debating topics ranging from memes to big news events.

reddit

Reddit Hasn’t Turned A Profit In Nearly 20 Years, But It Just Filed To Go Public Anyway

In 2021, Reddit created widespread market disruption when a community of day traders on the WallStreetBets platform began buying up GameStop shares in an attempt to harm hedge funds that bet against it. Many Redditors who joined the craze late suffered big losses.

Still, the episode highlighted the power of the company communities. Following the WallStreetBets incident, Reddit announced a fresh $250 million investment round, valuing the firm at $6 billion. It also declared plans to grow its workforce and enter overseas markets.

A significant user outcry earlier this year over a proposal to charge some third-party apps millions of dollars in fees to continue using the network brought the company back into the public eye. As a result, hundreds of the platform’s most popular subreddits were offline for weeks. The protest ended after Reddit threatened to expel forum moderators if the blackout continued.

Thursday’s filing provides the most extensive look yet at Reddit’s business, which aims to expand beyond the traditional ad-supported model on which other social networks still rely heavily.

The company  says it had more than 73 million daily active users in the latter three months of 2023, up from 52 million in 2021. In its filing, the company stated that the platform would have over 100,000 active communities by December 2023.

The company’s revenues in 2023 were $804 million, up 21% from $666.7 million in 2022. Reddit recorded a net loss of $90.8 million in 2023, less than the $158.6 million loss it experienced in 2022.

reddit

Reddit Hasn’t Turned A Profit In Nearly 20 Years, But It Just Filed To Go Public Anyway

While the company estimates its total addressable market in advertising to reach $1.4 trillion by 2027, it also stated in the filing’s risk factors statement that it has “a history of net losses and we may not be able to achieve or maintain profitability in the future.”

The company  also announced intentions to increase revenue by selling data to AI startups and focusing on the “user economy.” The filing outlines a future goal to enhance e-commerce on the site and increase user incomes through the Reddit Contributor Programme and Reddit Collectible Avatars Creators Programme. According to the filing, these systems allow users to earn monetary gifts and prizes, from which the corporation may receive a share.

On Thursday, the company also announced an expanded cooperation with Google, which includes access to Reddit data to train Google’s AI models and improve the display of Reddit content across Google platforms.

SOURCE – (CNN)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

Entertainment

Lord of the Rings to Return in 2026 With Two New Films

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File Image: The franchise's return to its New Zealand sets

New Line and Warner Brothers announced Thursday that two new films set in the magical worlds of J.R.R. Tolkien’s “The Lord of the Rings” book series are in the works.

Director Peter Jackson and screenwriters Fran Walsh and Philippa Boyens, who helmed the blockbuster “Lord of the Rings” film trilogy in the early 2000s, will collaborate to produce the two upcoming films.

Andy Serkis, a former “Lord of the Rings” actor, will star in and direct the first new film, provisionally titled “The Hunt for Gollum.” Serkis voiced and motion captured the titular creature in the first film series. Walsh and Boyens will create the screenplay alongside Phoebe Gittins and Arty Papageorgiou.

Serkis announced the news on Instagram, including a photo of himself posing with his “Lord of the Rings” avatar. “We is baaaaak, Precious!,” he wrote in the caption. The “Rise of the Planet of the Apes” star said in a press release that he is delighted to reunite with Jackson, Walsh, and Boyens, whom he described as “incomparable guardians of Middle-earth.”

lord of the rings set filming new zealand

“It’s just all too delicious,” he said, previewing Lord of the Rings return to its New Zealand sets.

In a joint statement, Jackson, Walsh, and Boyens echoed the sentiment, saying “it is an honour and a privilege to travel back to Middle-earth with our good friend and collaborator” Serkis.

Warner Bros. Pictures and New Line did not release any other details on the second picture.

The original “Lord of the Rings” trilogy from the early 2000s was not just a box-office smash, but also an awards-circuit sensation. The franchise got 30 Academy Award nominations for its three films and won 17 Oscars.

“The Return of the King” won best picture at the 76th Academy Awards, 20 years ago. Jackson won his first directing Oscar for the picture.

Warner Bros. Motion Picture Group co-chairs Michael De Luca and Pam Abdy commended the “Lord of the Rings” trilogy’s continuing effect and expressed their continuous commitment to bringing Tolkien’s words to the screen with Serkis’ “The Hunt for Gollum.”

“We continue an important commitment to excellence that is a true hallmark of how we all want to venture ahead and further contribute to the ‘Lord of the Rings’ cinematic history,” the two of them stated in a statement.

Warner Bros. Discovery CEO David Zaslav reportedly said in an earnings call on Thursday that “The Hunt for Gollum” will be released in 2026.

Lord of the Rings Actor Bernard Hill Dead at Age 79

Lord of the Rings Actor Bernard Hill Dead at Age 79

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Renewing Their Vows, Justin And Hailey Bieber Are Expecting A Child.

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NEW YORK — Baby Bieber is here! Play his massive smash “Baby” from 2010. In addition to renewing their vows, Justin and Hailey Bieber (née Baldwin) are expecting their first child together.

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PBS – VOR News Image

Renewing Their Vows, Justin And Hailey Bieber Are Expecting A Child.

A representative for Hailey informed the Associated Press on Thursday that the model is slightly over six months pregnant.

With matching posts, the couple shared the news on their individual Instagram profiles. A brief, amorous video clip featuring the couple kissing opens both.

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People – VOR News Image

Renewing Their Vows, Justin And Hailey Bieber Are Expecting A Child.

White lace envelops Hailey, her baby bump showcasing the sheer, form-fitting material. A picture session in which Justin takes pictures of his wife comes next. They have each other tagged in every caption.

The luxury brand Yves Saint Laurent claims in a press release that the picture and video are from the Biebers’ vow renewal ceremony that took place in Hawaii on Thursday.

The singer shared a photo of the couple holding hands on Instagram in 2018, remarking, “My wife is awesome,” confirming the long-rumored marriage. At the same time, Hailey updated her username from “Baldwin” to “Bieber” Within a month of dating, they engaged in the Bahamas earlier that year.

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Hapers – VOR News Image

Renewing Their Vows, Justin And Hailey Bieber Are Expecting A Child.

Hailey  is a model as well as the creator of the skincare brand Rhode. With eight No. 1 songs under his credit, including “Sorry,” “Love Yourself,” “What Do You Mean?” and “Despacito,” which features Luis Fonsi and Daddy Yankee, Justin, who first gained notoriety as a youngster, is a Grammy winner. “Justice,” his most recent album, was published in 2021.

SOURCE – (AP)

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A Judge Determines That Brian Wilson Of The Beach Boys Need Conservatorship Due To Mental Deterioration.

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Los Angeles — Brian Wilson,  Due to what his doctor refers to as a “major neurocognitive disorder,” a judge determined on Thursday that Beach Boys founder and legendary musician Brian Wilson should be placed under judicial conservatorship to govern his personal and medical decisions.

Following the death of his wife, Melinda Ledbetter Wilson, in January, who was in charge of the majority of his affairs and chores, the 81-year-old Wilson’s family and inner circle filed a petition, which Los Angeles Superior Court Judge Gus T. May granted during a hearing.

During the brief hearing, May stated, “I find from clear and convincing evidence that a conservatorship of the person is necessary.” The judge found that Brian lacks the capacity to make decisions about his own health care, and the evidence supports his assent to the arrangement.

May named manager LeeAnn Hard and publicist Jean Sievers, two seasoned Brian aides, as his conservators.

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A judge Determines That Brian Wilson Of The Beach Boys Need Conservatorship Due To Mental Deterioration.

No substantial complaints were voiced.

Through their attorney, Carnie and Wendy Wilson, two of Wilson’s seven children and members of the musical trio Wilson Phillips, requested that all of the children be included in a group text chain regarding their father and that they be considered when making medical choices. The judge accepted the agreement.

At a hearing on April 30, the two daughters had requested a postponement of the proceedings while the difficulties were resolved; nevertheless, it was evident during the hearing that a consensus had been achieved.

Wilson is receiving medicine for dementia, has a “major neurocognitive disorder,” and “is unable to properly provide for his own personal needs for physical health, food, clothing, or shelter,” according to a doctor’s affidavit that was filed with the petition in February.

Sievers and Hard have maintained strong contact with Brian and his spouse for many years. According to a report written by Robert Frank Cipriano, the lawyer the court assigned to defend Wilson’s interests, Wilson acknowledged the need for the conservatorship. Brian also expressed confidence in the two women’s judgment.

According to Cipriano’s report to the court, Brian lives with two kids and a long-term live-in caregiver at his “impeccably well maintained residence in Beverly Hills.”

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A Judge Determines That Brian Wilson Of The Beach Boys Need Conservatorship Due To Mental Deterioration.

According to Cipriano, Wilson has a decent understanding of who he is, where he is, and when he is. He can move around with assistance from a walker and the caregiver, but he is unable to name any of his children other than the two who live with him.

According to him, Brian “was largely difficult to understand and responded to questions and comments in very brief ways.”

Wilson’s broad approval, according to Cipriano, was a major factor in his approval of the conservatorship.

Following their marriage in 1995, Brian praised Ledbetter for stabilizing his well-known turbulent life. The two had met in the mid-1980s.

According to a family statement, Brian, his seven children, his caregiver, and his doctors conferred before the petition was submitted. To guarantee that “there will be no drastic changes” and that “Brian will be able to enjoy all of his family and friends and continue to work on current projects,” the decision was made, according to the statement.

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people – VOR News Image

A Judge Determines That Brian Wilson Of The Beach Boys Need Conservatorship Due To Mental Deterioration.

In California, judges have the authority to choose a conservator for an individual, their assets (also known as the estate), or both, as was the case with Britney Spears. Legislative changes were sparked by Spears’ case, which raised awareness of conservatorships—also known as guardianships in some states—most of it unfavorable. Wilson’s situation is more in line with the conventional use of conservatorships, which are frequently established for elderly individuals experiencing permanent mental impairment.

Since Hard is a trustee of the trust in which Wilson’s assets are placed, the Wilson petition did not ask for a conservator of the estate.

Regarded as a great inventor of vocal harmony and a co-founder, producer, arranger, and principal songwriter of the Beach Boys, Wilson’s career was completely turned upside down in the 1960s due to his struggles with mental health and substance misuse.

In 1988, he was admitted into the Rock & Roll Hall of Fame alongside his bandmates, which included his cousin Mike Love, siblings Carl and Dennis, and brother.

SOURCE – (AP)

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