Reddit users have expressed deep concern in response to the platform’s announcement of plans to go public. Redditors call it the “beginning of the end” and lament that it was “good while it lasted.” The company, however, sees its IPO as an “exciting” move that will open up growth opportunities for the business. Established almost two decades ago, Reddit is an online forum where users engage in discussions and share content on various topics.

Reddit has become a significant online community with an average of over 76 million daily visitors in December 2023, drawn in by features like the popular “ask me anything” threads. The filing for an initial public offering (IPO) with US regulators has triggered concerns among users who fear that the platform’s essence may be fundamentally altered. Critics worry that shifting focus from users to shareholders could compromise the site’s core values.

Some users argue that when the primary focus shifts from user satisfaction to shareholder returns, the product quality often suffers. The fear is that decisions may become driven by short-term revenue goals rather than a commitment to enhancing the overall user experience. This sentiment echoed past instances of user dissatisfaction, such as the widespread protests in 2023 when Reddit communities went offline to protest changes in the site’s management.

Despite historical protests, Reddit’s strategic moves have sometimes proven financially beneficial. In 2023, the platform’s decision to charge developers of third-party apps sparked discontent, leading to temporary restrictions on content. However, Reddit later struck a lucrative deal with Google, reportedly valued at $60 million, allowing the tech giant to use Reddit posts to train artificial intelligence tools.

The IPO filing doesn’t specify the amount Reddit aims to raise through listing on the New York Stock Exchange. The document sheds light on the company’s financial struggles, recording losses each year since its inception, with over $90 million in losses reported last year. While Reddit reported $804 million in revenue in 2023, primarily from advertising, the platform seeks to diversify its revenue streams. CEO Steve Huffman expressed excitement about opportunities for commerce and licensing content to AI companies.

This IPO marks a significant move for Reddit, being the first by a social media company since Pinterest in 2019. The decision comes amid a favorable climate in US financial markets, with consistent highs driven by optimism about the economy and the potential for growth fueled by artificial intelligence.