By Echo Wang
(Reuters) -Social media platform Reddit is eyeing a valuation of up to $6.5 billion in its initial public offering, a person familiar with the matter told Reuters on Friday, far less than what it was worth a few years ago.
The company is looking to set a price range of $31-$34 per share, the source said.
Reddit did not immediately respond to a Reuters request for comment.
Reddit was valued at $10 billion in a funding round in 2021. The company was seeking to sell about 10% of its shares in the IPO, Reuters had reported in January.
The company, best known for its niche discussion groups and its users voting "up" or "down" on the content posted by other members, last month disclosed that its net loss narrowed to $90.8 million and revenue growth was roughly 21% in 2023.
The IPO filing came almost two decades after Reddit's launch and would be a major test for the platform that still lags the commercial success of social media contemporaries such as Facebook and Twitter, now known as X.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
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