OpenAI CEO Sam Altman Listed As Major Reddit Shareholder Ahead Of IPO, Holds More Stock Than Co-Founder Steve Huffman

OpenAI CEO Sam Altman has been revealed as one of the top shareholders in Reddit Inc. as the social media company gears up for its initial public offering or IPO.

What Happened: Altman, who briefly served as Reddit’s interim CEO in 2014, holds a significant stake in the company, according to its IPO filing,  first noted on Bloomberg. Entities linked to Altman possess 8.7% of Reddit’s outstanding shares, including 789,456 Class A shares and 11.4 million Class B shares.

Interestingly, Altman owns more shares than Huffman. According to the filing, the Reddit CEO owns 368,954 Class A shares and 4.3 million Class B shares.

Reddit’s largest shareholder is Advance Magazine Publishers Inc., with approximately a third of the voting power. It is followed by Tencent.

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Altman has a long-standing relationship with the San Francisco-based social media company. He and Reddit co-founders Steve Huffman and Alexis Ohanian were part of the inaugural class at the startup accelerator Y Combinator in 2005. Altman also briefly served as the company’s interim CEO after the resignation of former CEO Yishan Wong.

"Although my 8 days as the CEO of reddit have been sort of fun, I am happy they are coming to a close," Altman said when announcing the hiring of interim CEO Ellen Pao in 2014

Meanwhile, in its IPO filing, Reddit has revealed plans to expand its business through data licensing deals with AI companies, in addition to developing its own AI products. These licensing deals will enable the company to leverage its content as a significant revenue source.

Why It Matters:

Reddit’s IPO is a highly anticipated event in the tech industry. The company officially submitted its IPO prospectus to the U.S. Securities and Exchange Commission on Thursday, with the IPO set to take place on the New York Stock Exchange under the ticker symbol “RDDT.”

The IPO is expected to be the year’s first significant tech IPO, marking a milestone event since Pinterest’s market entry in 2019.

Reddit’s recent filing revealed a 20% increase in annual revenue for 2023, totaling $804 million, primarily from its robust online advertising business. The company is reportedly striving to diversify its revenue streams amidst stiff competition from tech giants like Meta Platforms and Google.

Photo courtesy: Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.