Fidelity Deepens Valuation Cut for Reddit and Discord
[ad_1]
Fidelity has further cut the estimated value of its stake in social platform Reddit and chat app Discord, as well as SaaS startup Gupshup, giving a preview of how the asset manager sees the impact of the ongoing slowdown. in the public market in private shares.
Fidelity Blue Chip Growth Fund valued its Reddit holdings at $15.4 million as of May 31, according to the fund’s monthly disclosure published Friday. That is 7.36% less than $16.6 million mark at the end of April and overall a drop of 45.4% since its investment in August 2021.
Fidelity marked down the value of its Discord stake to $1.7 million, down 13.4% from a month ago and down 47% from the initial investment of $3.3 million. (It’s worth noting that the vast majority of Fidelity’s write-downs of Reddit and Discord shares occurred predominantly in the past year.)
Reddit, which is currently dealing with a revolt from the moderators from some popular subreddits about API cost changesIt was valued at $10 billion when the social media giant raised funds in August 2021. Discord raised funds in September 2021 at a valuation of $15 billion.
The financial giant also readjusted the value of its Twitter stake to $6.86 million, up from $6.55 million the previous month, but still 65% less than the original investment. It trimmed its stake in the SaaS startup Gupshup to $10.15 million, down from $11 million at the end of April and 38% from the original investment.
[ad_2]
Source link
