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Reddit has announced its plans to sell shares to the public, and not everyone is happy about it.

Since its inception in 2005, this platform has served as an online forum where people can discuss and share their thoughts, interests, hobbies, and passions. Its inclusive and community-driven atmosphere has cultivated a dedicated following over the years.

However, the recent news of Reddit鈥檚 decision to enter the public market has left many users feeling disheartened. Reports from the BBC demonstrate that Redditors have expressed sentiments such as viewing this move as the 鈥渂eginning of the end鈥� and lamenting that 鈥渢hey ruined it鈥�.

So, why is there such a sense of disappointment among the Reddit community?

A New Age: Reddit Files To Go Public

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On Thursday, Reddit officially filed for its highly-anticipated initial public offering (IPO), marking a significant milestone as the first major social media platform to do so since Snapchat in 2017.

The decision to go public means that not only investors but also devoted followers will have the opportunity to purchase shares in the IPO.

Reddit has unveiled plans to allocate shares based on users鈥� 鈥渒arma,鈥� a value that measures their contributions and standing within the community. Essentially, the platform will gauge users鈥� engagement and reputation to determine their eligibility to buy shares. The higher a user鈥檚 karma levels, the greater their chance of acquiring shares in the platform.

In explaining this strategy, co-founder and CEO Steve Huffman said in a letter in Thursday鈥檚 filing: 鈥淥ur users have a deep sense of ownership over the communities they create on Reddit. We want this sense of ownership to be reflected in real ownership 鈥� for our users to be our owners鈥�.

鈥淏ecoming a public company makes this possible.鈥�

A Sign Of The Stock Market Times

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While Mr. Huffman emphasises that the decision to go public is primarily about granting users genuine ownership, Reddit鈥檚 filing likely stems from the downturn in the broader IPO market.

Despite recruiting its inaugural chief financial officer and other executives three years ago, Reddit continues to operate at a loss. Mr. Huffman has long explored the possibility of an IPO and explored alternative avenues such as advertising and e-commerce to expand the business.

According to CNN, despite boasting an expanded user base of 73 million daily active users by late 2023, the platform reported a net loss of $90.8 million in 2023.

Reddit anticipates that its total addressable advertising market will expand to $1.4 trillion by 2027 and, while the filing does not say how much money the firm is hoping to raise by listing on the New York Stock Exchange, the platform evidently hopes that its latest filing will help it toward achieving this objective.

Why Are Users Upset?

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鈥淒ive into anything鈥� proudly declares Reddit, which also touts itself as the 鈥渇ront page of the internet鈥�.

But users are worried this is all about to change and that the IPO filling will change the site鈥檚 spirit.

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