REPORT: Reddit Is Raising Funding At A $US500 Million Valuation

Alexis OhanianAlexis OhanianReddit founder Alexis Ohanian.

Reddit is reportedly raising new money at a valuation topping $US500 million, Re/code said on Monday.

According to Re/code: “Sources said the almost-anything-goes site has reached a preliminary agreement to sell less than 10 per cent of the company for more than $US50 million.”

Investors in the new funding round are rumoured to include the site’s founder Alexis Ohanian, Andreessen Horowitz, Sequoia Capital, and individuals connected to Y Combinator.

Sources who spoke to Re/code about the investment claimed that Advance Publications, the Condé Nast parent company, will continue to own around 50% of Reddit.

Reddit has been mired in controversy recently over its involvement with the spread of stolen nude celebrity photos that emerged after a widespread iCloud hack. The site had avoided clamping down on communities and users sharing the images via the site, but acted on Saturday to ban the “Fappening” subreddit that had served as a hub for users to post the stolen photographs.

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