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Reddit's $150 Million Raise Gives Platform $1.7 Billion Valuation

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Reddit's $150 Million Raise Gives Platform $1.7 Billion Valuation

Reddit, the popular social news aggregation, web content rating and discussion website that bills itself as "the front page of the internet," is valued at $1.5 billion.

Reddit's management team is pitching venture capitalists to secure $150 million in financing based on a $1.5 billion valuation, Bloomberg reported. There has been no official confirmation of plans, terms of any deals are private and a spokesperson for the online platform confirmed no deal has been finalized as of yet.

Reddit is among a small handful of popular websites from the mid-2000s that survived the test of time and remains popular today. But behind the scenes, management has struggled to implement a sustainable business model and the company hired a controversial CEO Ellen Pao who was simultaneously combating a gender discrimination suit against her former employer, Kleiner Perkins Caufield & Byers.

Nevertheless, Reddit appears to be confident enough to secure the necessary financing to move forward under the leadership of its current CEO and co-founder Steve Huffman. Prior investors include Peter Thiel, Marc Andreesen, Jared Leto and Sam Altman.

According to Alexa, Reddit is ranked as the fourth most popular website in the United States. Only Google.com, Youtube.com (parent company for both, Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)) and Facebook.com (parent company Facebook Inc (NASDAQ: FB)) rank higher. However, among the four websites, Reddit boasts the highest daily time on site at 16 minutes and 38 minutes, versus 8:11 for Google.com, 9:13 for Youtube.com and 10:54 for Facebook.com.

Reddit is also ranked as the eighth most popular website in the world, data from Alexa also shows.

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Posted-In: Bloomberg Ellen Pao Peter ThielNews Rumors Financing Tech Media Best of Benzinga

 

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