August 12, 2021

(Reuters) -Social media network Reddit said on Thursday it will raise up to $700 million in a late-stage funding led by Fidelity Management and Research Company, giving it a valuation of more than $10 billion.

The company’s popular WallStreetBets forum has been at the heart of a boom in trading by small-time stock market investors this year that has threatened Wall Street hedge funds and sent shares in companies including GameStop and AMC soaring.

On the back of the trading frenzy, Reddit’s value doubled to $6 billion in February from a year ago as it raised more money to handle the rush of new subscribers.

In the second quarter, Reddit marked its first $100 million advertising revenue, an almost threefold jump from the same period last year.

The San Francisco-based company was founded in 2005 by Chief Executive Steve Huffman, entrepreneur Alexis Ohanian and the late Internet activist Aaron Swartz.

It is backed by venture capital firm Andreessen Horowitz and funds such as Sequoia Capital and Tencent Holdings.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur)