Reddit Stock Sale Raises $368 Million as Frenzy Spreads

(Bloomberg) -- Two weeks ago Reddit Inc. said it raised “more than $250 million” in a private stock sale. Turns out it was plenty more.

The social media platform said Tuesday in a regulatory filing that it raised $368 million in a preferred stock sale and has set a target of bringing in as much $500 million.

Reddit’s valuation stands at more than $6 billion just as it has become the focus of a stock trading frenzy. Last month members of one its forums drove up the share prices of companies including GameStop Corp. The spectacle hammered hedge funds that were shorting GameStop, rocked the stock market and sparked a Congressional hearing.

A representative for Reddit declined to comment Tuesday beyond the filing.

The San Francisco-based company has said it plans to use the proceeds in several areas, including video, advertising and overseas expansion.

Founded in 2005, Reddit allows users to submit posts or links to articles and asks the community to vote on each. Having slowly entered the mainstream, Reddit is now one of the most visited sites in the U.S.

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