Reddit is making moves towards more mergers and acquisitions, as revealed during the company’s fourth-quarter earnings call. CFO Andrew Vollero shared that Reddit is on the lookout for businesses that can either make use of Reddit’s large user base to enhance their products or help expand Reddit’s user base.
The company is actively seeking out capabilities, technologies, and other companies that can contribute to its growth. Vollero emphasized that Reddit is focused on acquiring assets that can add value to its business, a strategy that has proven successful in the past. He highlighted the importance of integrating acquired technologies into Reddit’s existing framework, particularly in the adtech sector, to accelerate time-to-market and enhance monetization capabilities.
While adtech acquisitions have been a key driver of Reddit’s success, Vollero mentioned that the company remains open to exploring a variety of opportunities. This flexibility extends to considering acquisitions that can complement Reddit’s existing operations and deliver results within its ecosystem.
In its latest financial report, Reddit announced robust earnings, with a significant portion of revenue coming from advertising. The platform also saw a notable increase in global daily active unique users, pointing to continued growth and engagement. Additionally, Reddit is exploring the potential of generating revenue from its AI search product, hinting at potential future avenues for expansion through M&A activities.
Reddit’s recent focus on AI investments, including the development of an AI search engine, aligns with its strategy of acquiring startups to enhance its capabilities. Past acquisitions have included adtech players and AI optimization tools, such as Memorable AI, Spell, Spiketrap, Oterlu, and MeaningCloud. These acquisitions have bolstered Reddit’s advertising tools, machine learning capabilities, ad targeting strategies, and content moderation processes.
As Reddit looks towards the future, its M&A strategy remains centered on leveraging the strengths of acquired technologies to drive innovation, improve user experience, and enhance its position in the market. With a track record of successful acquisitions and a commitment to strategic growth, Reddit is poised to continue its expansion through targeted mergers and acquisitions.
