Reddit said to be in talks with China’s Tencent to raise a $300m round

Reddit co-founders
Alexis Ohanian, chairman and co-founder of Reddit Inc., right, speaks as Steve Huffman, chief executive officer and co-founder of Reddit Inc., listens during a Bloomberg West television interview in San Francisco, California, U.S., on Tuesday, Aug. 23, 2016. Photographer: David Paul Morris/Bloomberg via Getty Images

Social news aggregating major Reddit is said to be raising $150 million to $300 million in a funding round led by Chinese tech giant Tencent.

According to a source-based report by TechCrunch, the Series D round is likely to see the startup hit a $2.7-billion pre-money valuation, while its post-money valuation could reach $3 billion.

The round could also see participation to the tune of $150 million in additional cash from its existing backers like Sequoia, Andreessen Horowitz, Y Combinator or YC’s president Sam Altman. T.

The report of the latest funding comes in nearly two years after the firm raised $200 million in a July 2017 round at a valuation of $1.8 billion. Prior to that, in October 2014, the Sillicon Valley firm had raised around $50 million valuing the company at around $500 million. Its early investors include Marc Andreessen and Peter Thiel, Jared Leto and Snoop Dogg.

Reddit, which claims to be the front page of the internet, is estimated to have attracted more than 330 million users per month in 2018, who collectively view more than 14 billion pages every month, having generated around 153 million posts and 1.2 billion comments to date.

According to a CNBC report, Reddit’s is expected to report $100 million in revenue for 2018.

Even though Tencent is in the forefront of this funding round, Reddit is banned in China.

According to website Gizmodo, “Further complicating matters is the fact that Tencent is not merely a resident on China’s internet—the company is one of the most important architects of the Great Firewall. It’s an interesting source of cash for a Silicon Valley company whose product is essentially speech.”

Tencent already owns Chinese multi-purpose messaging, social media and mobile payment app WeChat.

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