Reddit’s valuation doubles to $ 6 billion after $ 250 million in new funding

(Reuters) – Reddit Inc, which has been at the heart of a recent social media-driven retail frenzy, said on Monday it had raised more than $ 250 million in a new round of funding that doubled its valuation to $ 6 billion.

The social media company was valued at $ 3 billion following a funding round in February 2019.

“We decided that now was the right opportunity to make strategic investments in Reddit, including video, advertising, consumer products and expanding into international markets,” the company said in an article by blog. (bit.ly/3p37uC3)

Reddit CEO Steve Huffman told the Wall Street Journal it was a good market to raise money. (on.wsj.com/2N5U62)

“Valuations are currently very high. It never hurts to raise money when there is an opportunity to do so and Reddit has had a good year, ”Huffman said, according to the WSJ report.

Reddit, which has more than 50 million daily active users, said in the blog that ad revenue rose 90% in the last quarter from a year ago.

Video game retailer GameStop Corp and other companies, including movie theater operator AMC Entertainment Holdings Inc, have seen their shares run wild for the past two weeks as amateur investors on forums such as WallStreetBets of Reddit have acted in concert to raise stocks on which some American funds had bet.

The rally drew the attention of regulators, although U.S. Treasury Secretary Janet Yellen said on Sunday it was too early to say whether new policies or regulations were needed to deal with the volatility.