Time to start spamming those reposts: Top users are getting early access to 1.76 million shares
According to the amended S-1 form, Reddit and its investors will be placing approximately 22 million shares for sale when it finally decides to go public"as soon as practicable" at a price between $31 and $34 a piece. At the high end that could raise around $748 million."Reddit, Inc. is offering 15,276,527 shares of its Class A common stock and the selling stockholders identified in this prospectus are offering an aggregate of 6,723,473 shares of Class A common stock.
When factoring in restricted stock units, vesting options and additional shares being held by the deal's underwriters, Reddit's filing indicates a valuation of around $6.4 billion.
Eligibility for the direct share program isn't very steep - Reddit users and moderators only have to have an account created on or before January 1 of this year to qualify for early access to the 1,760,000 shares being set aside for the program.Thousands of subreddits go dark in mega-protest over Reddit's app-killing API pricesReddit is planning six tiers of early access based on each"participant's contributions to Reddit," the company said in its updated SEC filing.
The first tier of users will be those"who have meaningfully contributed to Reddit community programs," though what that means isn't explained more clearly. After that come tier 2 users, who must hold at least 200,000 karma points or have taken at least 5,000 moderator actions. Tier three includes users and moderators who hold at least 100,000 karma points and have taken 2,500 moderator actions.
Even better for the terminally online and all those repost bots that have managed to fly under the radar? The Reddit shares aren't subject to the 180 lockup period, so those highly valued users are free to ditch their shares if prices start to fall.