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Reddit, the leading Internet forum portal, is preparing for a possible IPO and has hired its first-ever chief financial officer, Drew Vollero, who has held similar roles in the past with Mattel, Snap and Allied Universal, The New York Times reported on Friday.
In an interview, Reddit CEO Steve Huffman confirmed that they are thinking about going public. “We’re working to get to that point,” he added.
According to Huffman, they do not have a fixed timetable for the IPO, but the arrival of Vollero could be the final piece to put the company’s accounts in order before going public with other social networks such as Twitter or Facebook.
Reddit is experiencing a moment of new relevance, after having been central to the GameStop stock rush, which with the help of an army of Internet users coordinated in the “WallStreetBets” sub-forum sent the share price soaring, forcing large investment funds to take billions in losses.
Reddit has some 52 million daily visitors and is home to more than 100,000 communities of “forumers” congregated around topics of discussion.
The social network has been staffing its top brass with new talent and in recent months they have raised capital with a new round of funding worth $250 million and a company valuation of $6 billion.
In addition, in December it acquired a social video app similar to TikTok, Dubsmash, while at the same time it has been taking steps to improve its business model, with new types of monetization, loyalty and advertising.
One of the big challenges for Reddit has been controlling hateful or abusive language on its platform, something that has been a top priority for Huffman, who took over in 2015.
Huffman has acknowledged that another of his priorities is to reduce barriers to entry to Reddit, whose unspoken rules in forums and sub-forums are complex and difficult to assimilate for someone unfamiliar with the network.