The company said it aims to list its shares on the New York Stock Exchange under the ticker symbol RDDT.
In a recent development, Reddit has reached an agreement with Google, permitting the search engine to utilize content from the online forum for training its artificial intelligence models and enhancing services like Google Search.
The collaboration, disclosed on Thursday and valued at approximately $60 million, will also grant Reddit access to Google’s AI models to refine its internal site search and other functionalities. Reddit opted not to provide further comments or address inquiries beyond the formal statement regarding the deal.
Simultaneously, the San Francisco-based company unveiled intentions for its initial public offering on Wednesday. In documents submitted to the Securities and Exchange Commission, Reddit revealed a net income of $18.5 million — marking its first profit in two years — for the October-December quarter, with revenue amounting to $249.8 million. The company aims to list its shares on the New York Stock Exchange under the ticker symbol RDDT.
The partnership with Google marks a significant milestone for Reddit, which heavily relies on volunteer moderators to manage its diverse range of topic-based discussions. These moderators have previously voiced objections to Reddit’s decisions, including a recent protest where large portions of the site were blacked out in response to Reddit’s plans to charge many third-party apps for content access.
According to a source familiar with the matter, the agreement with Google does not imply any data-driven alterations to Reddit’s operations. This individual, who requested anonymity due to the SEC’s “quiet period” prior to an IPO, emphasized Reddit’s distinct approach, contrasting it with algorithm-driven platforms like TikTok and Facebook. Unlike these platforms, Reddit users directly navigate to discussion forums without algorithmic recommendations.
Furthermore, the source highlighted that Google must adhere to Reddit’s user terms and privacy policy, which differ from those of other social media platforms. For instance, when Reddit users delete content, it is permanently removed from all locations without any residual traces. Reddit’s partners, including Google, are obligated to follow suit to uphold user choices.
The data-sharing agreement holds considerable significance for Google, which seeks access to human-generated content to refine its AI models and enhance their understanding of the world. Google commended Reddit’s platform as a repository of authentic human interactions and expressed its focus on facilitating access to valuable information for users.
While Google downplayed its interest in using Reddit data solely for AI model training, it emphasized enhancing user access to Reddit content through Google products, presenting it in more accessible formats such as product recommendations and travel advice. This alignment is described as benefiting both Google’s tools and Reddit’s user engagement.
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