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By Shubhangi Mathur, 1:44 PM ET
Reddit saidon Thursday that it will raise up to $700 million in a fundraising round led byFidelity Management valuing the social media company at over $10 billion.
Reddit saidthe company has already raised $410 million from Fidelity in its second roundof funding.
Reddit hasbeen in focus since small-time traders launched a battle against Wall Street analystson the platform. The traders have caused significant surge in shares of companiessuch as GameStop and AMC.
InFebruary, value of Reddit had already doubled to $6 billion due to the frenzy.
The company,founded by Chief Executive Steve Huffman, entrepreneur Alexis Ohanianand the late Internet activist Aaron Swartzin 2005, is a popular platform but has not made noteworthydevelopment as a business.
Othersimilar companies, founded around the same time, have much higher valuationsincluding Twitter Inc at $52 billion while Facebook Inc at $1 trillion.
Reddit hadmore than 52 million daily active users and over a 100,000 communities as of Januarycompared to nearly 2 billion daily active users of Facebook in June and Twitter’s206 million monetizable daily active users, the users who see ads on theplatform.
(Withinputs from Reuters)
PictureCredits: Reuters