Reddit, the social media platform synonymous with retail traders involved in the GameStop (GME) frenzy, could reportedly go public early next year. The company is looking to hire investment bankers and lawyers to prepare for an IPO in New York, according to a Reuters report.
Some users on the Reddit forum WallStreetBets are concerned with how going public will impact the 16-year-old platform. WallStreetBets exploded in popularity during the GameStop frenzy and now has more han 10 million members.
“It will be the end of Reddit,” wrote latestagecapitalist. “Reddit only has one resource to harvest — the users — almost anything they do to get more revenue will piss the user base off more — every year they need to increase revenue now.”
Reddit became a household name when GameStop shares surged on a so-called short squeeze in January. WallStreetBets users piled on the stock as hedge funds were forced to cover their short positions on the video game retailer, sending share prices higher.