Reddit is currently reviewing a letter from Nokia Technologies, which claims that the social media platform has infringed on patents related to telecom and cloud network technology. This news comes just as Reddit prepares for its upcoming initial public offering IPO which is expected to take place later this week.
Reddit has also recently faced increased scrutiny from the Federal Trade Commission regarding how it handles user-generated content, particularly in the context of training AI models. As the visibility and competition of Reddit increase, it acknowledges the potential for more intellectual property disputes. Nokia has not yet commented on the matter.
In the upcoming IPO, Reddit is aiming for a valuation of around $6.5 billion. The IPO has attracted significant interest and is oversubscribed by four to five times, according to Reuters. The IPO is scheduled to list on the New York Stock Exchange on March 21, and it is one of the most highly anticipated IPOs of the year. Reddit, which is home to 100,000 “subreddits,” was in the spotlight during the 2021 “meme-stock” phenomenon, when investors on its “wallstreetbets” forum drove up prices of heavily shorted stocks like GameStop.
To engage its community in the IPO, Reddit has set aside 8% of the shares for its users, moderators, certain board members, and friends and family of its employees and directors.