(Bloomberg) — A Reddit Inc. shareholder is seeking… to establish credit facilities using an ownership stake in the company, according to a person familiar with the matter.
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Advance Magazine Publishers Inc., the arm of the Newhouse family’s publishing empire that owns Conde Nast, is offering 7.8 million shares for $145.38 to $148.54 per share, which would value it at up to $1.2 billion, people familiar with the matter said. The range would represent a discount of up to 8% to Thursday’s Reddit closing price of $158.02 each.
Separately, Advance is buying derivatives on the shares, which will allow it to maintain its ownership stake while enabling it to set up the credit facility, one of the people said.
Reddit shares fell as much as 7.9% in the aftermarket on Thursday, after rising 16% during the regular trading day.
The sources said that details may change and no final decisions have been made. A representative for Advance did not immediately respond to requests for comment. Details of the block were first reported on X by The Inner Circle Trading Group.
The deal comes after Reddit’s stock price has risen more than 300% since its IPO in March, which raised $860 million. The social media company is licensing its data to train AI models, and has benefited alongside companies including Arm Holdings Plc and Astera Labs Inc. Increased investor interest in technology.
Earlier on Thursday, one of the companies, Tencent Holdings Ltd., revealed… announced the sale of 654,979 shares of Reddit stock on November 19 for proceeds of $88.5 million.
(Updates with details of credit facilities in the first three paragraphs and stock movement in the fourth paragraph.)
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