Courtesy of AP
Reddit announced the acquisition of Dubsmash, a TikTok-like short-form video app whose mission is to “elevate underrepresented creators.”
Terms of the deal weren’t disclosed. Dubsmash, founded in 2015, raised $20.2 million from investors including Eniac Ventures, Heartcore Capital, Index Ventures, Lowercase Capital and Sunstone Life, per Crunchbase.
Dubsmash claims its app generates more than 1 billion monthly video views and overindexes on Black and female users. Under the deal, Reddit will operate Dubsmash as a separate platform and brand but the company said it plans to integrate Dubsmash’s video-creation tools into Reddit.
Reddit first launched native video in 2017 — and it’s a format the privately held company sees as critical to keep fueling growth of the community-based discussion platform. The amount of video Reddit users posted from January-November 2020 increased 239% over last year, according to the company. Overall, Reddit says it had 52 million daily active users as of October 2020, up 44% from the year prior.
“Both Reddit and Dubsmash share a deep-rooted respect for how communities come together,” Reddit CEO Steve Huffman said in announcing the acquisition. “Dubsmash elevates underrepresented creators, while Reddit fosters a sense of community and belonging across thousands of different topics and passions. It’s clear that our missions closely align and that our community-focused platforms can coexist and grow as we learn from each other.”
Dubsmash says about 25% of all U.S. Black teens use its app and that females represent 70% of total users. The New York-based startup hasn’t disclosed the size of its user base but says about 30% of users log in daily to create video content.
“In our years of building Dubsmash, we’ve learned how video can spark creativity, unlock interactions, and deepen connections within communities,” Dubsmash co-founder and president Suchit Dash said in a statement. “We want to continue our journey to bring best-in-class video products to our users, and now Reddit users. We believe in the idea of connecting creators around interests and topics, something Reddit has pioneered, in our growing Dubsmash community.”
Reddit has about 700 employees total. Dubsmash’s 12 employees, including co-founders Suchit Dash, Jonas Drüppel and Tim Specht, are joining Reddit.
San Francisco-based Reddit was founded in 2005 and acquired by Condé Nast in 2006. In 2011, the site spun out of Condé Nast, whose parent Advance Publications retains a stake in Reddit. Last year Reddit raised $300 million in funding from investors including Tencent, Sequoia Capital, Fidelity and Andreessen Horowitz, with that valuing the company at around $3 billion.
Variety's Todd Spangler contributed to this post.
https://variety.com/2020/digital/news/reddit-acquires-dubsmash-1234852828/
