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Reddit targets valuation as high as $6.5bn in IPO

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Reddit targets valuation as high as .5bn in IPO

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Reddit is seeking a valuation of as much as $6.5bn in its upcoming initial public offering, in what would mark a significant reduction from its last private valuation in 2021. 

The social media platform was targeting between $31 and $34 per share, according to two people familiar with the situation, which would give it an equity value of about $6bn-$6.5bn on a fully diluted basis. The Wall Street Journal first reported the price targets.

The platform, known for its freewheeling discussion forums such as the WallStreetBets trading group, was valued at $10bn in its most recent private fundraising in 2021, when tech stocks were buoyed by a boost in online engagement during pandemic stay-at-home orders. 

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However, as pandemic restrictions lifted and interest rates rose, tech stocks slid — prompting Reddit to pause its IPO plans after filing confidentially to float at the end of 2021. 

Some of the proceeds of the IPO will go directly to Reddit through the sale of new shares. A portion would also go to existing shareholders, including employees, according to one person familiar with the matter. However, those who sell shares in the initial offering would be barred from further sales for a period following the deal, the person said. 

The company has also previously said it plans to allot a portion of its shares to retail investors and loyal users of its social network.

Reddit may yet adjust its price range ahead of its roadshow, which could begin within weeks, with a potential public listing as early as this month. The company declined to comment.

Reddit has not yet revealed how many shares will be outstanding immediately following the offering. That means its initial market capitalisation could be materially lower than the fully diluted range, which is based on the assumption that any outstanding options are exercised and any associated targets are hit.

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Fidelity, which was one of the lead investors in Reddit’s 2021 fundraising, had valued its stock at more than $35 per share as recently as last August, according to regulatory filings. The Fidelity Growth Opportunities Fund cut its internal valuation to $31.41 per share as of the end of November, marking a near-50 per cent discount compared with August 2021.

Reddit’s listing will represent a significant test of investor appetite, as the market for IPOs in the US slowly thaws after two years of moribund activity.

Most of the large companies that have listed over the past year have put a strong emphasis on profitability. By contrast, Reddit, which is trying to build up a largely advertisement-based business, has cumulative losses of over $700mn, including a net loss of $90.8mn in 2023. It warned in its prospectus that it “may never achieve profitability”.

Steve Huffman, Reddit’s chief executive, holds restricted stock that would vest if it attains a $5bn market capitalisation after the offering, according to the company’s prospectus.

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DOJ warns of criminal charges for state election officials if noncitizens vote

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DOJ warns of criminal charges for state election officials if noncitizens vote

The Justice Department sent letters warning election officials in all 50 states and the District of Columbia that they could face criminal prosecution over noncitizen voting, a spokesperson for the Justice Department confirmed Tuesday.

The letters, signed by Assistant Attorney General Harmeet Dhillon, who heads up the department’s Civil Rights Division, give states five days to explain how they will comply with federal voter eligibility laws and how they will maintain “clean voter lists.”

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“The Department sent these letters to all 50 states and the District of Columbia, asking for voluntary compliance in a timely manner with their obligations under federal law to ensure only citizens vote in federal elections,” a Justice Department spokesperson said in a statement.

Noncitizen voting in federal elections is extremely rare, but Trump and his administration have falsely portrayed it as a widespread issue.

Michigan Secretary of State Jocelyn Benson, Nevada Secretary of State Francisco Aguilar and Utah Lt. Gov. Deidre Henderson are among those who said they received the letters from the Justice Department.

The letters say state election officers “could be criminally prosecuted for aiding and abetting” noncitizen voting. They further specify that any election officer who knowingly retains noncitizens on a statewide voting registration list or who facilitates noncitizens’ receiving and casting ballots could be subject to criminal liability.

“An intentional act that is aimed at diluting the votes of citizens could also constitute a violation” of federal law, the letters said.

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Henderson wrote on social media that the threats constitute “truly bizarre behavior.”

“Got another love letter this morning from the DOJ sprinkled throughout with threats of criminal prosecution,” she wrote. “I’m sure I’m not the only chief election officer of a state who is being targeted for following state and federal laws by resisting DOJ’s demands for private voter data that have thus far been ruled illegal by at least a dozen courts.”

The letters are the latest move in the Justice Department’s campaign to assert more federal control over state elections.

While some states have complied with the administration’s demands that they hand over voter roll data, the Justice Department has sued 30 states and Washington, D.C., for resisting. So far, 11 different federal courts have dismissed the Justice Department’s efforts to seize voter rolls.

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Reigning champion Argentina escapes with remarkable World Cup victory over Egypt

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Reigning champion Argentina escapes with remarkable World Cup victory over Egypt

Lionel Messi #10 of Argentina celebrates scoring his team’s second goal during their World Cup match against Egypt in Atlanta on Tuesday.

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They looked beaten. And out. Argentina, the defending World Cup champion and No. 1-ranked team, was down 2-0 late against Egypt.

Then, in a span of 13 remarkable minutes, Argentina scored not once, not twice, but three times, capping a comeback for the ages and leaving Egypt stunned and shellshocked.

For much of the game in Atlanta, Egypt was in control, hobbling Argentina early. The Egyptian attack began almost immediately with a stunning header goal delivered by Yasser Ibrahim in the 15th minute. After that, Egypt’s defense closed ranks, making it practically impossible for Argentina to equalize.

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It was downhill from there for the Argentines: team captain Lionel Messi failed to convert a penalty kick, and in the 67th minute, Egypt got a second goal from Mostafa Ziko (after an earlier Egyptian goal had been disallowed after a video review). It looked like Argentina was finished. On the brink of elimination.

But no one told the Argentine players that.

In the 79th minute, Lionel Messi began doing his thing. He fired a cross near the Egyptian goal, and Cristian Romero headed it in. Messi was not done. Four minutes later, he powered a shot past the Egyptian keeper. It was his eighth goal of this tournament, the most of any player. The score was 2-2.

Then, in stoppage time, yet another Argentina header and another goal, this time from Enzo Fernandez.

“This is the World Cup for you,” said Messi after the game. “It wasn’t easy to come back from two goals down. But as I always say, this group never gives up. We always try to fight until the end.”

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French referee François Letexier speaks with Egypt forward Mohamed Salah during the World Cup Round of 16 match between Argentina and Egypt in Atlanta.

French referee François Letexier speaks with Egypt forward Mohamed Salah during the World Cup Round of 16 match between Argentina and Egypt in Atlanta.

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Afterward, Egypt coach Hossam Hassan complained about the French referee and the officiating. “I am not convinced. I am not convinced with this outcome. I’m not convinced with the way things unfolded during this match,” said Hassan in a post-match news conference. “We have been treated unfairly today. We have suffered injustice.”

“We would have deserved to earn this win, but we are leaving with honor, with pride, regardless of this defeat,” said Hossan.

African soccer teams have been the stars of this World Cup. Morocco has yet to lose a game. Cape Verde qualified for the first time in its history and stymied Spain, Uruguay and Saudi Arabia. Argentina barely beat them in a nail-biter of a match.

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Top Senate Democrats push Trump-affiliated companies for answers about IRS settlement

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Top Senate Democrats push Trump-affiliated companies for answers about IRS settlement

Top Senate Democrats are pushing for answers on whether a provision in a controversial settlement agreement between President Trump and his own administration applies to companies co-founded by or affiliated with the Trump family.

As part of a deal struck in May by the Justice Department to resolve a lawsuit brought by Mr. Trump, the Internal Revenue Service is permanently barred from pursuing claims against Mr. Trump, his oldest sons Don Jr. and Eric, and the Trump Organization based on prior tax returns.

In a one-page document signed by Acting Attorney General Todd Blanche and dated May 19, the Justice Department said the defendants in the president’s lawsuit — the IRS and the Treasury Department — are “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing, any and all claims” arising from tax returns filed before the settlement took effect. Blanche also wrote that the settlement applies to “parties including trusts, parent, sister, or related companies, affiliates, and subsidiaries.”

Now, Senators Elizabeth Warren of Massachusetts, Senate Minority Leader Chuck Schumer of New York, and Ranking Member of the Senate Finance Committee Ron Wyden of Oregon are pushing 11 businesses and organizations with ties to the Trump family to get answers for the “significant questions” the settlement raises relating to the tax audit provision, and whether the companies are included in the deal.

“Under the guise of a so-called legal settlement, the Trump administration has attempted to decree that the President, his family, and their entire business empire — potentially including entities with even the vaguest ‘affiliation’ to the family — are to face zero consequences if they have committed a range of financial crimes or misdeeds — regardless of the severity of the violation,” the senators wrote in letters transmitted to the companies Monday night. 

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The letters were sent to mining company Kaz Resources, defense firm Powerus, cryptocurrency companies World Liberty Financial and American Bitcoin, robotics startup Foundation Future Industries, investment firm 1789 Capital, private aviation company Tag Air, and prediction markets Polymarket and Kalshi. 

All of the companies either were founded by Mr. Trump and his two adult sons, or list members of the Trump family as advisers, board members, or partial owners. Donald Trump Jr. sits on Polymarket’s advisory board and 1789 Capital, where he’s a partner, has invested in Polymarket. Days before Mr. Trump took office for his second term, Kalshi also announced Trump Jr. would be a strategic adviser.

The Democrats, who are in the minority, lack subpoena power, so Mr. Trump, his children and his companies can’t be forced to answer the questions posed by the senators.

According to recent financial disclosures, the president earned more than a billion dollars from cryptocurrency ventures alone last year, including from his meme coin business and World Liberty Financial, his family’s cryptocurrency firm. 

Separately, the senators also asked the Trump Organization in a separate letter if it believes it has “immunity from all audits, civil penalties or federal prosecution” for any crimes that could have occurred before the settlement.

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Trump Media and Technology Group, which is majority owned by a trust that lists Mr. Trump as the sole beneficiary and operates the Truth Social platform he uses daily, also received a letter from the Democratic senators.

“The public deserves transparency about the scope of this get-out-of-jail free card for Trump-aligned businesses, and about whether you intend to rely on this settlement as a free pass for any possible violations of the law,” the senators continued in their letter, which also seeks any communications that executives at the companies have had with the Justice Department and White House leading up to or after the settlement was signed.

The settlement was announced months after Mr. Trump and two of his sons and the Trump Organization accused the IRS and Treasury Department of unlawfully allowing a government contractor to leak tax returns to media outlets in 2020. 

In a statement, a Justice Department spokesperson said “the IRS routinely provides releases as part of resolving taxpayer reviews and audits. This settlement follows that same standard practice.” 

The spokesperson did not provide specific information about which companies are covered by the audit provision, or whether the Trump Organization and Trump family are the only entities covered by that addendum. 

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