Reddit was valued at $10 billion in a private fundraising round last month. By the time the IPO takes place early next year, Reddit hopes it will be valued at more than $15 billion, one of the sources said.
Reddit had roughly 52 million daily active users and over 100,000 communities, or "sub-reddits," as of October last year.
The company makes most of its money through advertising. It reported $100 million in advertising revenue in the second quarter, an almost threefold jump from the same period last year.