Sam Altmancondition as Reddit’s third-largest shareholder is ready to pay back when social networking site makes data public later this month. Reddit and its shareholders want to sell nearly $748 million worth of shares in an initial public offeringwhich could result in a valuation of $6.5 billion. Novel regulatory filing shows that the company will do it offer 15 million shares at a price of $31 to $34 per shareand current shareholders plan to sell another seven million.
At this share price Altman’s contribution to Reddit Altman’s ownership of about 1.66 million shares of the company could be worth between $51.4 million and $56.4 million, according to Business Insider estimates.
This was disclosed in a prospectus filed last month with the US Securities and Exchange Commission (SEC). Altman owns 8.7% of the social media platform, with the number of votes amounting to 9.2%. But reports also says Altman “disclaims beneficial ownership of these shares except to the extent that he has a pecuniary interest in them”, which means he doesn’t exactly own all the shares associated with him – they may belong to one of his funds, including Hydrazine Capital II and Apollo Projects, both named in the filing note.
Despite Altman’s gigantic stake and investment in Reddit, his a seat on Reddit’s board from 2015 to 2022 and an eight-day stint as CEO in 2014.recently on the social media platform struck a deal with Google, a rival of OpenAI. The deal will allow the search giant to employ Reddit user-generated content to train artificial intelligence models.
When Reddit debuts on the Novel York Stock Exchange under the symbol “RDDT”, it will be: the first major US social media company to go public since Pinterest in 2019
