Shareholders plan to cash out $1.2 billion by selling 7.8 million shares of Reddit stock
Reddit shareholder Advance Magazine Publishers plans to sell 7.8 million shares at a price of $145.38-148.54 per share, raising up to $1.2 billion. This news caused Reddit's stock price to drop more than 6% in pre-market trading. Although Advance stated that it will continue to act as a long-term shareholder, its selling plan has attracted market attention. At the same time, Tencent also disclosed that it has sold a large number of Reddit shares, reducing its holdings to 7.75 million shares
According to the Zhitong Finance APP, "the American version of Tieba" Reddit (RDDT.US) fell more than 6% in pre-market trading on Friday. Reports indicate that Reddit's shareholder Advance Magazine Publishers is seeking to sell 7.8 million shares of Reddit stock at a price of $145.38 to $148.54 per share, aiming to raise up to $1.2 billion.
It is reported that Advance Magazine Publishers seeks to use Reddit's stock to establish a credit instrument while purchasing derivatives of Reddit stock to indirectly maintain its ownership stake. Data shows that as of September 30, Advance Magazine Publishers held approximately 24% of Reddit's Class A and Class B common stock.
However, Advance Magazine Publishers stated in a document submitted on Thursday: "Advance Magazine Publishers has not, does not, and will not sell any shares of the issuer for trading or other reasons, and intends to continue as a long-term shareholder of the issuer."
In addition, Tencent disclosed that the company has sold a significant amount of its holdings in Reddit. According to a filing with the U.S. Securities and Exchange Commission (SEC), Tencent sold 655,000 shares of Reddit stock at an average price of $133.76 per share on November 19, sold 882,600 shares at an average price of approximately $129.38 per share between November 14 and November 18, and sold nearly 1.5 million shares at an average price of $132.19 per share between November 11 and November 13. After a total sell-off valued at over $400 million, Tencent's holdings in Reddit were reduced to 7.75 million shares