As Reddit takes the plunge into the IPO realm, revealing its S1 filing with the Securities and Exchange Commission (SEC), a closer look at the shareholding landscape unveils a mix of expected beneficiaries and notable absentees.
Key Shareholders and Their Holdings:
- Steve Huffman – CEO: Reddit’s CEO is set to hold a significant stake with 368,954 Class A shares and 4,312,818 Class B shares, positioning him for multimillionaire status upon the company’s public debut.
- Jennifer Wong – COO: The COO, instrumental in doubling revenues since 2018, holds 2,078,159 Class A shares, reflecting the company’s acknowledgment of her role in its growth.
- Sam Altman – Head of OpenAI: A surprise inclusion, Altman, formerly Reddit’s CEO for a brief period, holds 9.2% of voting power, with entities connected to him possessing 789,456 Class A shares and a significant 11,369,103 Class B shares.
- Tencent – Chinese Gaming Giant: With an 11% ownership stake resulting from a $150 million investment in 2019, Tencent commands a substantial voice at the table, holding 1,127,422 Class A shares and 14,320,372 Class B shares.
- Vy Capital – Dubai-based Investment Fund: Flying under the radar, Vy Capital, based in Dubai, owns 5.5% of the voting power, boasting 404,569 Class A shares and 6,792,080 Class B shares.
- Reddit Users: In an unusual move, Reddit plans to extend IPO share purchase opportunities to approximately 75,000 power-users and moderators. The number of shares offered to this group remains undetermined, introducing an element of unpredictability.
- Advance Magazine Publishers – Owner of Condé Nast: As the owner of Condé Nast, which acquired Reddit in 2006, Advance Magazine Publishers stands to gain significantly. Holding 16,182 Class A shares and 42,1919,092 Class B shares, the windfall from Reddit’s IPO is poised to be substantial.
Notable Absence:
- Alexis Ohanian – Reddit Cofounder: Surprisingly absent from the S1 filing is Reddit’s cofounder Alexis Ohanian. Reportedly having a strained relationship with Huffman, his former college roommate, Ohanian’s stake, if any, falls below the 5% threshold that would mandate disclosure.
As Reddit ventures into the public market, the intricate web of shareholders, from internal leadership to external entities, sets the stage for an intriguing IPO journey. The mix of surprises and omissions adds an extra layer of complexity to the unfolding Reddit narrative.