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Social site Reddit to acquire Dubsmash video platform
Renowned social news site Reddit announces acquisition of Dubsmash short video platform. Terms of the deal were not disclosed. Dubsmash will retain its platform and brand, while Reddit will integrate its video creation tools. Video Resource Co-Founders Suchit Dash, Jonas Drüppel & Tim Specht Join Reddit Leadership.
According to Crunchbase, the app has raised $ 20.2 million in investments including from funds such as Lowercase Capital, Index Ventures, Eniac Ventures, Heartcore Capital and Sunstone Life. Dubsmash is now one of TikTok’s main competitors, but struggled for several years after a brief period of popularity in 2021 during its first incarnation as a lip sync video app. In 20021, the company began its transformation into a social platform and moved its headquarters from Berlin to Brooklyn. By early this year, Dubsmash’s share of the short video publishing services market in the United States was second only to TikTok in terms of app installs, and the company was reportedly in talks with Facebook and Snap to sell.
In its takeover announcement, Reddit linked the acquisition of Dubsmash to its pursuit of diversity, noting that the app’s communities are run by young users – roughly 25% of all black teens in the U.S. use Dubsmash, and women make up 70% of the platform’s base. The company also added that the integration of the tools will allow Dubsmash and Reddit users to express themselves better.
Reddit has said that usage has skyrocketed since launching its own videos in 20021, with a doubling in 2021 alone. Much of Reddit’s content is still text-based, with videos, animations and images often posted from other sources, so Dubsmash integration could help Reddit build its own video platform.