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The company priced its shares at the top of a marketed range before the start of trading on Thursday.
BBC HomepageSkip to contentAccessibility HelpYour accountLiveNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityBusinessMarket DataEconomyYour MoneyCompaniesTechnology of BusinessCEO SecretsArtificial IntelligenceReddit IPO: Share sale values social media firm at $6.4bnPublished34 minutes agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesBy Tom Gerken & Mariko OiBBC NewsReddit has priced its shares at the top of a marketed range, valuing the social media platform at $6.4bn (£5bn).It has raised $748m as it sells 22 million shares for $34 each, making it one of the biggest initial public offerings (IPO) by a social media firm.The shares will start trading on the New York stock exchange on Thursday.In an unusual move the company offered some of the shares to the platform’s users, although it has not been disclosed how many took up the offer.Reddit was founded almost 20 years ago and has become one of the most popular websites in the world.It is an online forum where users can discuss topics that interest them. As of the end of December 2023 it had more than 73 million users, according to the company.But the filing brings to the forefront a question that has been bubbling for years behind the scenes – how can a business make money from what is, essentially, random conversations.People do not pay to use Reddit – the website is completely free for people to browse, post and comment.For 20 years it couldn’t turn a profit, and some might ask why Reddit is worth billions if it has not ever made money.It has tried a few things, and a significant visual change in 2017 made the website more friendly to advertisers.But it seems Reddit’s road to profitability has an end in sight, built around AI models.That is because companies like OpenAI, the developer of ChatGPT, will pay for data of those random conversations.Google is believed to have paid Reddit $60m for the right to scan almost two decades of discussions to make its AI more human-like – and Reddit has said it has agreed licensing deals worth more than $200m over the next two to three years.In February, Reddit said it lost $90.8m in 2023, so the money from artificial intelligence (AI) firms could make the platform profitable.Inquiries and accusationsBut there are also plenty of concerns on Reddit’s horizon too.For one thing, the social media platform is facing increased scrutiny from regulators. The US Federal Trade Commission (FTC) is already looking into how Reddit licences its data for AI models – generally speaking, regulators don’t like it when big technology firms sell data generated by users.While the platform may have seen that coming, it may have been blindsided by a challenge from mobile phone firm Nokia, which is accusing it of infringing on its patents. “We will evaluate their claims,” Reddit said, adding that it’s faced similar accusations in the past.Perhaps most significant of all is that Reddit’s filing with the US financial markets regulator, the Securities and Exchange Commission (SEC), notes its users as a potential risk that comes with owning shares in the company.”If we fail to increase or retain our user base or if user engagement declines, our business… and prospects will be harmed,” it said in the filing.”If Redditors do not continue to contribute content or their contributions are not valuable or appealing to other Redditors, we may experience a decline in the number of Redditors accessing our products and services… which could result in the loss of advertisers.”Reddit’s user base has been known to react with frustration to changes made on the platform.Such is their distaste for changes made in recent years, a search on the platform for chief executive Steve Huffman – username u/spez – shows that when Redditors mention him the comments are usually preceded by foul language.Despite growing discontent, threats to leave the platform – such as the blackout that rendered much of Reddit unusable in 2023 – have often proved short-lived.And although there have been efforts to create an alternative platform, one of Reddit’s biggest pluses is something it does not have – a significant rival.While there may be concerns from Redditors, the social media platform seems to be on relatively safe ground when it ties its stock market value to its users, so long as there is nowhere else for them to go.Related TopicsCompaniesInternational BusinessArtificial intelligenceRedditMore on this storyReddit users say share plans ‘beginning of the end’Published23 FebruaryReddit aims for $6.4bn valuation in shares salePublished11 MarchTop StoriesThis will be year economy bounces back, Sunak says, after inflation fallsPublished8 hours agoBank of England expected to hold interest ratesPublished1 hour agoFresh string of defeats in the Lords over government’s Rwanda billPublished5 hours agoFeaturesThe Papers: Rwanda defeat in Lords and ‘rate cut hope’Poland’s ‘Heart of the Garden’ named tree of 2024UK start-up to beam 4K video from space stationThe GP who became Ireland’s youngest taoiseachWill the UK economy ‘bounce back’ this year? 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BBC HomepageSkip to contentAccessibility HelpYour accountNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityWorldAfricaAsiaAustraliaEuropeLatin AmericaMiddle EastUS & CanadaCould you be a fair juror for Trump? We asked New YorkersThis video can not be playedTo play this video you need to enable JavaScript in your browser.Could you be a fair juror for Trump? We asked New YorkersCloseJury selection is under way in Donald Trump’s New York City hush-money trial, with hundreds of people selected as potential jurors.They must answer a questionnaire to determine, among other things, if they can be impartial about the former president.The BBC asked some of those questions to Manhattan residents.SubsectionUS & CanadaPublished50 minutes agoShareclose panelShare pageCopy linkAbout sharingRead descriptionExplore moreCould you be a fair juror for Trump? We asked New Yorkers. Video, 00:02:16Could you be a fair juror for Trump? We asked New YorkersSubsectionUS & CanadaPublished50 minutes ago2:16Up Next. A view from inside court for Trump’s blockbuster trial. Video, 00:01:15A view from inside court for Trump’s blockbuster trialSubsectionUS & CanadaPublished19 hours agoUp Next1:15Press, police and protesters: Outside Trump courthouse. Video, 00:01:12Press, police and protesters: Outside Trump courthouseSubsectionUS & CanadaPublished1 day ago1:12Trump’s ‘perp walk’ moment explained in 60 seconds. Video, 00:01:00Trump’s ‘perp walk’ moment explained in 60 secondsSubsectionUS & CanadaPublished31 March 20231:00Editor’s recommendationsCopenhagen stock exchange engulfed by huge fire. Video, 00:01:03Copenhagen stock exchange engulfed by huge fireSubsectionEuropePublished12 hours ago1:03Moment spire collapses at Copenhagen stock exchange. Video, 00:00:43Moment spire collapses at Copenhagen stock exchangeSubsectionEuropePublished11 hours ago0:43Dormice ladders built in the Forest of Dean. Video, 00:00:51Dormice ladders built in the Forest of DeanSubsectionGloucestershirePublished1 day ago0:51Liz Truss: The world was safer under Trump. Video, 00:00:35Liz Truss: The world was safer under TrumpSubsectionUK PoliticsPublished22 hours ago0:35Huge fires blaze along Miami highway. Video, 00:00:33Huge fires blaze along Miami highwaySubsectionUS & CanadaPublished12 hours ago0:33Watch: Georgia opposition leader punches MP during debate. Video, 00:00:34Watch: Georgia opposition leader punches MP during debateSubsectionEuropePublished21 hours ago0:34Wheelie bins fly and a caravan overturns in strong wind. Video, 00:00:24Wheelie bins fly and a caravan overturns in strong windSubsectionStoke & StaffordshirePublished1 day ago0:24Hannah Waddingham calls out demanding paparazzi. Video, 00:00:28Hannah Waddingham calls out demanding paparazziSubsectionEntertainment & ArtsPublished1 day ago0:28Endangered California condor chicks hatched in LA. Video, 00:01:28Endangered California condor chicks hatched in LASubsectionUS & CanadaPublished1 day ago1:28
[ad_1] Jury selection is under way in Donald Trump’s New York City hush-money trial, with hundreds of people selected as potential jurors. They must answer a questionnaire to determine, among…
BBC HomepageSkip to contentAccessibility HelpYour accountNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityUKEnglandN. IrelandScotlandAlbaWalesCymruIsle of ManGuernseyJerseyLocal NewsFirst product of Meghan’s lifestyle brand revealedPublished11 minutes agoShareclose panelShare pageCopy linkAbout sharingImage source, ReutersImage caption, Meghan pictured at a polo match in Florida last weekBy Sean CoughlanRoyal correspondentA first glimpse of the new business venture from the Duchess of Sussex has been teased on social media, with pictures of a jar of strawberry jam.In a bid to preserve a sense of mystery, the jam from the new American Riviera Orchard brand seemed to be spread among friends and influencers.Fashion designer Tracy Robbins posted a picture of the jam on Instagram.It was numbered “17 of 50”, suggesting the number of recipients of this first fruit of the new business.The arrival of Meghan’s new California-based lifestyle brand had been signalled on social media last month and this suggests that it will be selling food products.What do we know about Meghan’s new brand?Five things about Harry and Meghan’s brand revampWhy did Harry and Meghan leave the Royal Family?There seemed to be have been something of a re-launch for Meghan and husband Prince Harry’s brands and businesses this year, beginning with the overhaul of their regal-looking website under the sussex.com label.Their latest projects seem to be moving away from a previous focus on their time as working royals, such as their Netflix film Harry and Meghan and Prince Harry’s memoir Spare.The hint about the strawberry jam from Meghan’s American Riviera Orchard brand seems to fit with the couple’s latest Netflix plans.Meghan is going to launch a Netflix show which will “celebrate the joys of cooking and gardening, entertaining, and friendship”.Prince Harry will be involved in another Netflix venture showing the inside track on the world of polo. That’s the equestrian sport, not the mints.Delfina Blaquier, married to Prince Harry’s polo-playing friend Nacho Figueras, also posted a picture of the new jam, with hers labelled “10 of 50”.The social media trail for American Riviera Orchard evokes a sense of the couple’s home in California – and this soft launch for the jam show pictures of the jars in a sunny basket of lemons.It’s not known how much items from the new lifestyle brand will cost. Although there are already plenty of other royals getting into jams. Visitors to the gift shops in royal palaces can get a Buckingham Palace Strawberry Preserve for £3.95 or Windsor Castle Fine Cut Seville Orange Marmalade, also for £3.95.On both sides of the Atlantic they seem to be conserving their finances.Related TopicsUK Royal FamilyMeghan, Duchess of SussexMore on this storyWhat we know about Meghan’s regal lifestyle brandPublished16 MarchMeghan launches surprise new lifestyle brandPublished14 MarchTop StoriesMPs back smoking ban for those born after 2009Published8 minutes agoMuslim student loses school prayer ban challengePublished2 hours agoBowen: Iran’s attack on Israel offers Netanyahu a lifelinePublished7 hours agoFeaturesJeremy Bowen: Iran’s attack on Israel offers Netanyahu a lifelineIranians on edge as leaders say ‘Tel Aviv is our battleground’A really, really big election with nearly a billion votersWhat is the smoking ban and how will it work?Martin Tyler: I nearly lost my voice foreverWho are the millions of Britons not working?How to register to vote for the local elections ahead of midnight deadlinePlaying Coachella after cancer emotional, says DJHow the Alec Baldwin fatal film set shooting unfoldedElsewhere on the BBCFrom weight loss to prolonging lifeIs intermittent fasting actually good for you? James Gallagher investigatesAttributionSoundsCould Nina shake up the unspoken rules of modern dating?Brand new comedy about love, friendship and being your own selfAttributioniPlayerWill the UK introduce tough anti-tobacco laws?Under new plans, anyone turning 15 from this year would be banned from buying cigarettesAttributionSoundsCan William Wisting find the truth?The Norwegian detective returns, tackling more grisly cold casesAttributioniPlayerMost Read1Nursery boss ‘killed baby she strapped to beanbag’2Birmingham Airport flights disrupted by incident3Muslim student loses school prayer ban challenge4First product of Meghan’s lifestyle brand revealed5MPs back smoking ban for those born after 20096Police told to shut down right-wing Brussels conference7Historic Copenhagen stock exchange goes up in flames8Bowen: Iran’s attack on Israel offers Netanyahu a lifeline9Marten a ‘lioness’ who ‘loved her cubs’, court told10Sons of McCartney and Lennon release joint single
[ad_1] The jars of strawberry jam, labelled America Riviera Orchard, have been shared with friends and influencers.