Reddit announced on Dec. 14 that it had purchased the video-sharing app Dubsmash to help the company expand into the ever-growing market of user-created video.
Under the terms of the deal, Dubsmash will continue to operate as a separate platform and brand. Its innovative video creation tools will be incorporated into Reddit’s platform as well.
“We are excited to accelerate Reddit’s focus on video, bringing our tools and technology to their passionate, rapidly-growing user base and sparking evermore forms of creation,” Dubsmash’s founders said in a statement.
Dubsmash is a free app for creating and sharing user-generated videos. Reddit is a San Francisco based message board site, which features message boards on millions of topics and hosts “ask me anything” digital town halls with celebrities, politicians, and various experts.
Reddit already allows its users to upload and live-stream video but has limited editing features. By acquiring Dubsmash, the company will gain more sophisticated user-created video technology much faster than if it tried to develop the same on its own.
Reddit recently disclosed that the social-media company had an average of 52 million daily active users as of October, up 44% from a year earlier.
“Both Reddit and Dubsmash share a deep rooted respect for how communities come together. Dubsmash elevates under-represented 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,” said Steve Huffman, CEO, Reddit.
The deal will integrate the two companies’ staff and Dubsmash’s three co-founders, Suchit Dash, Jonas Drüppel, and Tim Specht, will be joining Reddit effective immediately.
The impetus behind the acquisition can most likely be attributed to the growing popularity of user-created videos on other platforms. User-created videos are behind the hit app TikTok, which has inspired Facebook-owned Instagram and Snapchat to introduce similar services. Also popular are platforms that let users broadcast live videos such as Amazon’s Twitch and Alphabet’s YouTube.
According to data from App Annie reported by TechCrunch earlier this year, Dubsmash’s share of the U.S.’s short-form video market is second only to TikTok.
Dubsmash is an incredibly popular platform among a diverse group of users. Dubsmash’s app has been downloaded nearly 197 million times, and the company says about 30% of its users log in daily to create videos. Among the creators on the platform, 25% of all black teens in the U.S. are on Dubsmash, and females represent 70 percent of the app’s users.
“In our years of building Dubsmash, we’ve learned how video can spark creativity, unlock interactions, and deepen connections within communities. 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,” said Suchit Dash, Head of Dubsmash.
The exact financial terms of the cash and stock deal have yet to be released.