RDDT: Reddit IPO Is Nearly Here but Users Aren’t Happy. Here’s Why a Revolt Might Happen.

Perhaps it’s the CEO’s $193 million pay package for 2023, while the company reported a net loss of $91 million. All the while volunteer mods did the work for free.

• Public company wannabes should disclose their financials prior to listing. And that’s what pissed off Reddit communities left and right. The company, which is sustained by the effort of unpaid volunteer moderators, turned in a sizable loss of $91 million for 2023 on revenue of $804 million.
• Now the worst part—chief executive Steve Huffman ate up nearly 20% of that revenue and paid himself a lofty $193 million in total compensation. The home of subreddits like WallStreetBets, needless to say, didn’t like that. Worth saying, perhaps, is that these guys bankrupted a $7.8 billion hedge fund who bet against GameStop GME—Reddit’s favorite meme stock.
• Reddit’s IPO RDDT does not have an exact valuation yet, but estimates from 2021 have valued the social media platform at $10 billion. Analysts are saying that the float could happen at $5 billion or more. Reddit’s public market debut will be a sight to see. And maybe, just maybe, folks at WallStreetBets could turn it into the flop of the year if they decide to.