Social platform reddit appoints first CFO to prepare for IPO

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According to Tencent technology news on March 5, reddit, a social platform at the heart of the recent retail stock trading boom, said on Friday that it had appointed drew vollero as its first Chief Financial Officer (CFO) to prepare for the initial public offering (IPO).
Mr. Valero, 55, was snap’s first CFO and has led the financial operations of Mattel and allied universal. His duties at reddit will include expanding financial, auditing and accounting functions and leading the company through the listing process. Valero will start leading reddit’s finance team later this month and will report to the company’s chief operating officer, Jen Wong.
Steve Huffman, chief executive of reddit, said in an interview: “we have been asked, is this a sign that reddit is going public? We are thinking about it and working towards it. ”
Mr. heffman said reddit has not yet set a listing timetable, but the appointment of Mr. Valero shows that the 15 year old company is developing its financial business to keep up with listed peers such as twitter and Facebook. Reddit also said on Friday that advertising revenue grew by 90% in the fourth quarter of 2020, with daily active users growing to more than 52 million. It is also home to more than 100000 communities or sub forums based on various themes.
Over the years, reddit represents a return to the era of message boards on the Internet. In those days, people gathered to talk about makeup, video games and other topics. It dabbles in different models and occasionally leads to controversy. For example, it is criticized for not being active enough to fight against online bullying and hate content.
Heffman, one of reddit’s co founders, took over the site again in 2015. He has transformed many of the company’s businesses in an effort to curb hate speech and digital abuse, and developed the company’s advertising and direct to consumer product businesses. Reddit changed its terms of service to ban harmful content that had previously flooded some of its sub forums.
In recent months, reddit has also increased its executive team, hired security executives and appointed new members to the board. Last December, the company acquired Dubsmash, a video focused social application, competing tiktok with short video application TikTok. Last month, reddit raised $250 million in new capital, the company’s largest round of venture financing, valuing the company at $6 billion.
Reddit plans to use the money to expand its business, including its financial team, heffman said. He also hopes to make reddit more mainstream by improving products or making other investments, he said. “It may be difficult for reddit to really become mainstream, it will take more time, and we want to shorten the process,” heffman said
Reddit has been in the spotlight recently, with retail investors pushing many short stocks, including video game retailer Gamestop and chain cinema AMC, to rebound sharply. (Tencent technology reviser / Jinlu)