Reddit announced that it will double the number of employees after the new tour, in which it received a total investment of $ 250 million. The number of employees of the company, which is currently around 700, will increase to 1400 in the coming period. According to CNBC’s report, about 600 of the current employees work in Reddit’s offices in the US cities of San Francisco, New York, Los Angeles and Chicago.
It can be said that the timing of this new investment that Reddit has received is interesting. The platform’s Wall Street channel, GameStop, attracted attention with its role in the appreciation of the shares of AMC and other companies. Users quickly gained value by collectively buying the shares of certain companies. The US Securities and Exchange Commission (SEC) is also said to be under scrutiny.
Speaking to The Wall Street Journal, Reddit CEO Steve Huffman stated that they will not go through a comprehensive strategy change after the new investment. It was stated that the investment will be used for video, advertising, end-user products and international expansion. The company announced that it spent the entire marketing budget for the 5-second Super Bowl advertisement. Reddit’s acquisition of Dubsmash showed that video is important for the future of the platform.
Reddit’s market value has increased to $ 6 billion with the new investment. The company’s direct advertising revenue in the last quarter of 2020 increased by 90 percent compared to the same period of the previous year.
According to December figures, Reddit has 52 million daily active users. For Facebook, this number is at the level of 1.85 billion. Snapchat has 265 million daily active users and Twitter has 187 million daily active users. In short, the road to the destination seems quite long for Reddit.