The social network company Reddit is set to become the latest company to slowly move into the social media space that is has been dominated by the China owned short video sharing app TikTok as the former announced its decision to acquire the short video sharing platform Dubsmash.
The companies did not disclose the financial details of the deal. A combination cash and stock would be used to fund and complete the deal, a spokeswoman for Reddit told the media about the deal.
A number of established social media platforms and companies have added short video sharing features and services on their platforms prodded by the immense success of TikTok – owned by the Chinese company ByteDance. Such companies getting into the short video sharing space include Snapchat Inc which added its feature called “Spotlight” in November this year while as similar service called “Instagram Reels” was launchedbt the social media giant Facebook earlier in the year.
Reditt is looking forward “to bringing our teams together to combine the unique creator experience of Dubsmash with the community growth engine of Reddit”, the company said in a blog post announcing the acquisition.
According to reports published in the media previously, Dubsmash was approached for a buyout by both Facebook and Snap sometime earlier this year. reports has claimed back then that the talks between the companies that had taken place separately had progressed to the level where the companies were discussing a price tag in “the hundreds of millions of dollars”, said the media reports.
The acquisition of Dubsmash would give the users of Reditt direct access to the editing and short-video creation tools that are available on Dubsmash, Reddit said in a blog post. The social networking site’s users already have a feature that they can use to upload and stream videos.
The diverse user base of Dubsmash was specifically cited in the announcement by Reddit, and identified it as one of the primary reasons why it acquired the short video sharing app. Dubsmash is used by about 25 per cent of Black teenagers in the United States and about 70 per cent of the users of the app were women, according to Reddit.
“Dubsmash provides a welcoming platform for creators and users who are under-represented in social media,” Reddit said in the blog post.
The popularity of the 2013 founded Dubsmash was based on the ability of the app to allow its users create short form lip-sync videos to popular movie dialogues or sound bites and then share such content with other users on the platform.
According to analytics firm Sensor Tower since its launch, the mobile app of the company has been downloaded 196.8 million times globally. According to data available from TikTok, this Chinese owned mobile app has been downloaded just under 2.6 billion times globally since it was launch.
Dubsmash would maintain its own platform and brand, added the San Francisco-based Reddit. The entire team of Dubsmash, which will include co-founders Suchit Dash, Jonas Drüppel and Tim Specht, will also be joining Reddit.
(Adapted from Reuters.com)