Reddit Inc. shares experienced a significant decline in premarket trading following reports that Advance Magazine Publishers Inc., an arm of the Newhouse family publishing empire, is seeking to establish a credit facility using its equity stake in the company. Advance is offering 7.8 million shares priced between $145.38 and $148.54, valuing the stake at up to $1.2 billion. This news comes after Tencent Holdings sold nearly 7.8 million Reddit shares worth $400 million, reducing its indirect ownership in the platform by about 28%. Additionally, Reddit's shares fell 5.4% in postmarket trading, reflecting investor concerns over the company's valuation and growth prospects, despite its strong earnings beat post-IPO.