Reddit is including the possible moderator revolt among the "risk factors" in the social media's operations, according to the company's S-1 filing.
The social media platform admitted to relying upon most of the community operations to "volunteer moderators" and that their action or inaction can result in "disruptions" in Reddit's communities.
Reddit Suffers Forum 'Blackouts' Over Policy Changes
It can be remembered that Reddit was hit with platform-wide "blackouts" last June after major subreddits went private in protest to the social media changing its policies for third-party APIs.
Reddit offered several incentives to forum administrators and moderators to open the subreddits again, but many reportedly declined.
Many of the subreddits that went to protest have millions of members, in which several had gone private for weeks.
The warning was released ahead of Reddit's planned IPO opening, allowing potential shareholders to have a glimpse of the platform's business perspective.
Reddit Prepares for IPO Opening
Reddit has been preparing for its initial public offering for quite some time as it opens its stocks to the public in March.
This includes allowing its most loyal users to have the opportunity to own stocks in the platform and other special privileges.
Along with the S-1 filing, the social media company announced several steps to make its platform more profitable, including the collaboration with an AI company for content on Reddit.
The $60 million deal involves the company licensing content on its community boards, including discussions and posts, to be used as datasets to train AI models.
Reddit has not revealed the name of the AI company it is currently in talks with.
The platform is also developing its in-house APIs to replace the third-party extensions moderators have used for their subreddits.
It is worth noting that Reddit's new APIs will be part of its subscription plan, unlike the previous APIs that can be obtained for free.
Related Article : Reddit to License Content with AI Company for $60 Million
