Reddit fell over 10% at the beginning and is considering terminating its data licensing agreement with Google

The social platform Reddit fell more than 10% on the first day of trading, hitting a low of $166.13. Reddit executives are considering terminating Google's access to their platform under Alphabet, and the two parties are currently in negotiations for the renewal of their existing data licensing agreement. In 2024, Reddit signed an estimated $60 million annual agreement with Google to allow Google to crawl its forum content to drive AI development. Reddit has shaken this agreement, with the core being that Google's AI generated summary box directly answers questions on the search page, allowing users to navigate to external forums such as Reddit without clicking.