Reddit Inc. saw another increase of $6 billion in its valuation after allocating $250 million for their new funding as the trading frenzy continues to hype up in the market. The recorded valuation was now doubled since February 2019 when the social media company was priced at $3 billion.
The Rise of Reddit Value Continues
According to an article by Bloomberg, a spokeswoman from Reddit said that the funding which was spearheaded by Vy Capital was the reason behind the valuation increase. Moreover, Reddit which was founded in 2005, targeted that it will be focusing on an international expansion where it will allocate the money for business advertisements and for purchasing video equipment, as per Wall Street Journal.
Since its launch, the San Francisco-based company became the bullseye of the internet when it comes to discussion forums. Reddit also transformed into a much user-friendly environment as it allows everyone to engage in the community through writing a post and answering the queries. In the US, Reddit became one of the most popular sites where the internet's funniest memes are born and some strange conspiracies have been brought out to the table.
On Sunday, Reddit ran a five-second ad for the Super Bowl LV, which could be a key in the stock-trading frenzy that persists. The football fans could have been pumped up with what turned out to be a 'pure' celebration as the Reddit value grows. It might be the shortest Super Bowl ad in social media according to New York Times, but this was also the time for the viewers to fully enjoy the grandeur of the short-lived visual.
The ad reads "Wow, this actually worked. If you're reading this, it means our bet paid off. Big game spots are expensive, so we couldn't buy a full one. But we were inspired and decided to spend our entire marketing budget on five seconds of airtime."
According to San Francisco Chronicle, r/WallStreetBets, a Reddit group gave GameStop a helping hand to rise in the trade market. The video game retailer plunged to the ground after the hedge funds declined and cost the investors a huge loss on their part.
Over the past weeks, the stock market has been in the limelight when AMC Entertainment Holdings Inc., WallStreetBets, and GHame Stop Corp. drove the retailers and traders to a mass hysteria through the short-squeeze rallies.
In a blog post, Reddit told that they already endured a long way over years to sustain more than 50 million followers who stay with the Reddit community on a daily basis. Moreover, the company added that they are committed to serving the community to bring more connections across all platforms so people could still feel them even if they are offline.
Reddit has been slammed over the years due to its content which allows harassment, trolling, racism, and other unpleasant discussions. At the time, Reddit fought it; they only aimed for the 'internet freedom' that people deserve to use.
However, when Reddit co-founder Steve Huffman returned as CEO in 2015, Reddit regulated its content policies. It banned the Nazi groups, Donal Trump groups, and other related socio-political groups. The discussion website added that the said parties have been spamming harassment-related contents and other violations that disregarded Reddit's policies.
This article is owned by Tech Times.
Written by Joen Coronel