Shares of Reddit (NYSE:RDDT) climbed over 5% today as the social media company announced significant partnerships with both the National Basketball Association (NBA) and the National Football League (NFL).
These strategic alliances are part of Reddit’s broader initiative to enhance its advertising revenues and capitalize on the sports genre’s substantial viewership.
As part of the new deals, Reddit users will gain access to exclusive video highlights from various games and tournaments, enhancing user engagement on the platform.
This move is expected to significantly bolster Reddit's core advertising business by leveraging the high traffic typically associated with sports content.
Additionally, Reddit’s financial outlook appears promising following a collaboration in May with OpenAI.
This partnership has led to a content deal that is anticipated to further drive advertising revenue.
This series of strategic decisions has already shown positive impacts, as evidenced by a 48% increase in Reddit’s Q1 revenue, reaching $243 million.