10X Gains on the Horizon?

Our top pick for the next crypto boom is flying under most investors' radars. We believe this coin has the potential to deliver 10X returns or more. Get the name of the coin and our complete investment guide for just $3.

Does Sam Altman Own Half A Billion Dollars Worth Of Reddit Stock? Not Quite, Reveals Fine Print Of IPO Filing

Ananya Gairola
February 29, 2024

Over the past few days, several media publications have reported about ChatGPT-parent, OpenAI CEO Sam Altman’s Reddit stock ownership. However, contrary to the widely reported $435 million, Altman’s actual stake is significantly lower.

What Happened: Reddit’s recent IPO filing disclosed that entities linked to the OpenAI CEO possess 8.7% of the company's outstanding shares, including 789,456 Class A shares and 11.4 million Class B shares. However, the association of the shares with Altman does not imply ownership by him, reported Business Insider.

According to the document, “Altman disclaims beneficial ownership of these shares except to the extent of his respective pecuniary interest therein.”

See Also: SEC Investigating Whether OpenAI CEO Sam Altman Misled Investors, Internal Communications Under Scrutiny: Report

“This is a legal distinction indicating that while he has control over the voting and dispositive control over these shares, he does not necessarily have a direct economic interest in them, except to the extent that he may benefit financially,” said Chris Harvey, a venture capital fund attorney at Harvey Esquire APC.

The footnote in the document suggests that the shares are divided among five different entities: Apollo Projects SPV-B, Altman Holdco, Apollo Projects, Apollo Projects SPV-A, and Hydrazine Capital II

Other than Altman Holdco, which is an LLC, all the other organizations need to submit disclosure forms called Form ADVs. As per these forms, Altman doesn’t own most of the shares in these organizations.

Instead, he’s labeled as a “related person,” basically someone who gives investment advice. The OpenAI CEO might own up to 5% of the shares in Hydrazine and up to 15% of the shares in Apollo. The rest of the shares probably belong to other investors, but their identities aren't known. 

This means Altman doesn’t actually own as many shares as people thought he did. For instance, Hydrazine Capital II seems to own nearly 9.9 million shares of Reddit. But Altman probably owns only up to 5% of Hydrazine Capital II’s shares, which is about 492,720 shares of Reddit.

Based on that logic, the report estimated Altman’s Reddit stock outside of Altman Holdco to be worth around $25 million, based on a $5 billion target IPO valuation. If he is the sole owner of Altman Holdco’s 965,128 shares, that would add another $34.5 million. 

This brings his total Reddit equity to approximately $60 million, a far cry from the reported $435 million.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: Sam Altman Brushes Off $7 Trillion AI Chip Project Speculation: ‘Don’t Pay Too Much Attention To That’

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image made via photos on Shutterstock

Continue Reading...

Popular

This Man, Who Never Went To University, Is Making $1.2M-A-Year At Deloitte At The Age Of 30

Ben Newton, a former apprentice at Deloitte, has achieved the feat of becoming a partner at the age of 30, earning $1.2 million a year.

EU releases blocked funds of $6.7 billion to Poland as part of its post-pandemic recovery package

WARSAW, Poland (AP) — disbursed 6.3 billion euros (about $6.7 billion) to Poland as a part of the 27-nation bloc's post-pandemic recovery fund, the biggest single transfer ever to the country, a government minister said Monday.

This Defi Coin Could 10X Soon... - Ad

Do NOT miss this opportunity for life-changing gains this year. Experts are predicting this coin has potential for unprecedented growth. Even a small position could deliver 10x returns or greater very soon. Timing is everything.

Warren Buffett Is Known For His Simple Lifestyle But Here Are 8 Lavish Things We Know He Owns

Warren Buffett, the billionaire, embraces a modest lifestyle and prefers stashing his cash in the bank. Despite standing among the world's wealthiest, the priciest items he owns could surprise everyone.

Key Nvidia, Apple Supplier TSMC To Receive $6.6B From US Government For Arizona Plant

The funding, a part of the U.S. CHIPS and Science Act, will bolster TSMC's over $65 billion investment in three advanced fabrication plants in Phoenix, Arizona.

My No. 1 Coin Is... - Ad

You're looking for the #1 Coin to invest in... Am I right? Then check out this special $3 report. Inside, you'll find the name of the coin, how to invest, and what to expect. Don't miss your chance...

Why Phoenix Motor Shares Are Surging Premarket Monday

Phoenix Motor expects revenue of $8-$9 million in Q1 FY24, up from $1.8 million in Q1 2023, thanks to strategic initiatives.

The No. 1 AI Stock of 2024 (Not Nvidia) - Ad

It's not Nvidia, Meta Platforms, Alphabet, or Amazon. But thanks to a recent major deal, an under-the-radar stock could become the No. 1 winner of the AI boom. "This company just teamed up with one of the biggest power players in the AI industry... yet you can still buy it for just one-twelfth the price of Nvidia -- the time to buy is NOW," says Marc Chaikin.

NASA is seeking a faster, cheaper way to bring Mars samples to Earth

CAPE CANAVERAL, Fla. (AP) — NASA’s plan to bring samples from Mars back to Earth is on hold until there’s a faster, cheaper way, space agency officials said Monday.

A.I. Pioneer Warns: "I thought we had more time..." - Ad

A radical new A.I. development is about to blindside millions of Americans. This early A.I. pioneer just issued an urgent warning explaining everything.

Top 3 Financial Stocks That Are Ticking Portfolio Bombs

As of April 11, 2024, three stocks in the financial sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

Dead whale in New Jersey had a fractured skull among numerous injuries, experts find

LONG BEACH TOWNSHIP, N.J. (AP) — A post-mortem examination of a whale that washed ashore on New Jersey's Long Beach Island found that the animal had sustained numerous blunt force injuries including a fractured skull and vertebrae.

The No. 1 Crypto for 2024 - Ad

We're entering the final crypto bull run, and 2024 will be your last chance to ever get rich from crypto. These five tiny cryptos are believed to create generational wealth over the next 12 months. $30 trillion is poised to funnel into the crypto markets thanks to a new government regulation just signed.

A healthy US economy's secret ingredient: Immigrant workers, eager to fill jobs

MIAMI (AP) — Having fled economic and political chaos in Venezuela, Luisana Silva now loads carpets for a South Carolina rug company. She earns enough to pay rent, buy groceries, gas up her car — and send money home to her parents.

Russian Government-Linked Hackers Stole Federal Email Correspondence With Microsoft: CISA

Russian government-linked hackers, identified as Midnight Blizzard, have stolen email correspondences from several U.S. federal agencies and Microsoft, marking a significant cybersecurity breach.

AI Hype Is Overblown -- Except One Sector Now Soaring - Ad

40% of "AI" companies don't even use AI... and many AI companies have no gains whatsoever. But AI is transforming one secret group of companies, practically overnight. Already, 50 stocks in this sector have shot up 100% or more in just 90 days. Professor Joel Litman explains everything.

Jessica Alba steps down as chief creative officer at Honest, the personal care company she founded

Jessica Alba, who shot to fame in the James Cameron television series “Dark Angel,” as well as films such as “Sin City” and the “Fantastic Four,” will step down as chief creative officer at Honest Company, a personal care company that she founded.

Top 3 Tech And Telecom Stocks Which Could Rescue Your Portfolio This Quarter

The most oversold stocks in the communication services sector presents an opportunity to buy into undervalued companies.

The Sleeper Crypto of 2024? - Ad

One little-known coin is quietly gearing up for a potential breakout. Our analysts believe it could be the surprise crypto hit of 2024. Discover the name of this under-the-radar gem and our full analysis for just $3.

British military warns of possible vessel being boarded near Strait of Hormuz

DUBAI, United Arab Emirates (AP) — The British military warned Saturday that a vessel may have been boarded by an unknown party near the crucial Strait of Hormuz.

EXPOSED: How the Rich Are Using A.I. To Get An Unfair Advantage - Ad

The wealthy elite have always used cutting-edge technology to get an unfair advantage... A.I. will be no different. Right now, A.I. is creating a huge wealth-building advantage for folks who know how to use it.

FBI Chief To Warn Congress Of Potential Coordinated Attack In US Similar To Russia Massacre: 'Threats To Our Public Safety And National Security...So Elevated'

FBI Director Christopher Wray is expected to raise concerns about the possibility of a coordinated attack in the United States, similar to the recent massacre in Russia, in a congressional hearing on Thursday.

Thai prime minister unveils details of a $13.5 billion digital money handout plan

BANGKOK (AP) — Thailand's Prime Minister Srettha Thavisin on Wednesday revealed details of his government’s plan to stimulate the economy by giving digital cash handouts of 10,000 baht ($275) to an estimated 50 million Thais for spending at their local businesses.

Super-Billionaire Goes All-in on $3 A.I. Stock - Ad

I've been pounding the table on this $3 A.I. stock for weeks now. I believe we'll soon talk about this little-known stock in the same way we talk about Amazon, Tesla, and Nvidia now. This is without a doubt my #1 recommendation to buy today.

2 Russian businessmen linked to Alfa Group win court case over EU sanctions

BRUSSELS (AP) — Russian businessmen Mikhail Fridman and Petr Aven won a court case Wednesday over a European Union decision to sanction the pair for their alleged role in Russia’s war against Ukraine.

The Man Who Bought Bitcoin at $5 Reveals His Next Tiny Crypto Gem for 2024 - Ad

Early Bitcoin Millionaire Charlie Shrem just revealed his five little-known crypto coins that he believes could create generational wealth over the next 12 months. What's more, some of these tiny cryptos he's discovered trade for less than $1!

Brazil again postpones visa requirements for US, Canada and Australia, this time until 2025

RIO DE JANEIRO (AP) — Brazil’s government has postponed until April 2025 for citizens of the U.S., Australia, and Canada that had been scheduled to end on Wednesday.

Buy This A.I. Stock Before Elon's "A.I. Day" on May 16 - Ad

Luke Lango is now recommending this little-known A.I. stock because it could supply Elon Musk with a critical piece of infrastructure for his new A.I. venture, something Luke is calling "Elon's A.I. 2.0". Once Elon reveals it on May 16, you may have missed the biggest gains.

What's Going On With Pratt & Whitney Parent RTX Shares Today?

RTX Corporation shares dip on Tuesday. Pratt & Whitney unveils North American Technology Accelerator, aiming to enhance MRO network development.

Turn Government Reports Into Overnight Profits? - Ad

Uncover the ultimate way to target overnight gains every time the government releases jobs numbers, GDP, inflation data, or any other economic report. You can see all the details here for yourself... including my exhaustive backtest.

New York Hospital Sues AG Letitia James, Who Took On Trump, Over Alleged 'Fishing Expedition' Of Drug Testing Records

Garnet Health Medical Center is suing New York Attorney General Letitia James to dismiss a subpoena demanding medical records of obstetrics patients, arguing the investigation into secret drug testing of pregnant patients is excessively broad and politically motivated.

Vertex Pharma scientist talks about the long road to developing non-addictive painkillers

WASHINGTON (AP) — For decades, patients seeking medication for pain have had two choices: over-the-counter drugs like aspirin or powerful prescription opioids like oxycodone.

A.I. Pioneer Issues Urgent Warning to Americans - Ad

According to one early A.I. pioneer: "You can either use this as an unfair advantage to grow your wealth, or you can let it ravage your retirement savings. There's no middle option."

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service