Reddit has agreed with Google, permitting the latter to harness Reddit’s content for the advancement of Google’s artificial intelligence models.
As confirmed by three knowledgeable sources, Alphabet, Google’s parent company, carries an annual value of around $60 million with Reddit.
According to one source, the partnership represents a pivotal strategy for Reddit in anticipation of its much-anticipated stock market debut. It aims to broaden its revenue sources in the face of stiff competition from platforms like TikTok and Facebook, which are owned by Meta Platforms.
The sources, preferring anonymity due to restrictions on public disclosures, have not been officially recognized. Responses from both Reddit and Google on this matter have been withheld.
Bloomberg had earlier hinted at Reddit’s content deal without specifying the acquiring party. Reddit had previously declared its intent to commercialize access to its application programming interface (API), which is crucial for content dissemination. This agreement signifies Reddit’s first venture with a leading AI firm.
Insiders suggest that Reddit, having contemplated a public listing for over three years, is on the verge of filing its initial public offering (IPO) paperwork, potentially as soon as Thursday. This filing will, for the first time, unveil the company’s financials to potential IPO investors.
Valued at about $10 billion in a 2021 investment round, Reddit reportedly aims to float approximately 10% of its shares in the forthcoming IPO, as indicated by earlier reports from Reuters.
The impending IPO of Reddit marks the first major public offering by a social media entity since Pinterest in 2019.
