Sunday, August 3, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

Reddit at $5B seems eminently reasonable

Simon Osuji by Simon Osuji
January 29, 2024
in Creator Economy
0
Reddit at $5B seems eminently reasonable
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The collapse of Amazon’s proposed deal to buy iRobot highlights just how critical the IPO market is this year. With governments tightening the screws on big tech companies trying to buy smaller firms, a key exit avenue could be closed to startups in the near term.


The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.


If mergers and acquisitions are harder to pull off, especially for big tech companies that sometimes prefer to buy new tech over building it, unicorns and other late-stage startups will have precious few paths to liquidity available to them apart from going public. That fact makes Reddit feeling out its own IPO valuation all the more important. What could help tech companies avoid another 2023 (a year that had precious few public debuts) is a massive, winning public offering.

To accomplish that, Reddit needs to price its offering very carefully. Too low a price, and any positive trading results that follow could be marked as more artificial than material. Too high, and the stock could lose ground from its IPO price.

Image Credits: Nigel Sussman (opens in a new window)

But private tech companies want good IPO news that sticks, and public market investors won’t gain confidence if Reddit clears a bar that it set too low. However, if the price is too high, Reddit’s post-IPO performance may scare companies off if it can’t keep up. We saw last year how much post-IPO trading performance can impact other companies’ decisions to go public — when Instacart failed to hold on to gains after pricing at $30 per share, other tech companies took note. Today, Instacart is worth a little more than $25 per share.

Source link

Related posts

Here’s Why Anthropic Refuses to Offer 9-Figure Pay Like Meta

Here’s Why Anthropic Refuses to Offer 9-Figure Pay Like Meta

August 3, 2025
Authorities seize BlackSuit ransomware gang’s servers

Authorities seize BlackSuit ransomware gang’s servers

August 1, 2025
Previous Post

Freedom of information laws key to exposing AI wrongdoing. The current system isn’t up to the task

Next Post

Eastern and Western Cape to gain 3,470MW grid capacity for wind power

Next Post
Eastern and Western Cape to gain 3,470MW grid capacity for wind power

Eastern and Western Cape to gain 3,470MW grid capacity for wind power

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Trump-China Talks Follow 125% Tariff Shock

Trump-China Talks Follow 125% Tariff Shock

4 months ago
Japan faces a tough tug-of-war with yen bears

Japan faces a tough tug-of-war with yen bears

1 year ago
US strike set back Iran’s nuclear effort a few months: early intel assessment

US strike set back Iran’s nuclear effort a few months: early intel assessment

1 month ago
Boeing Ramjet Artillery Shell Hits Record Range in Indirect Test

Boeing Ramjet Artillery Shell Hits Record Range in Indirect Test

2 years ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • The world’s top 10 most valuable car brands in 2025

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Global ranking of Top 5 smartphone brands in Q3, 2024

    0 shares
    Share 0 Tweet 0
  • Top 10 African countries with the highest GDP per capita in 2025

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.