Reddit Inc. said Monday that it bought the video-sharing app Dubsmash to expand its presence in user-created video, one of the hottest corners of the Internet.
15-year-old Reddit says Dubsmash is the first major acquisition with a free app for creating and sharing user-created videos. The financial terms for cash and stock trading have not been disclosed.
Based in San Francisco, Reddit is best known for its bulletin boards on millions of topics and the “Ask Anything” Digital Town Hall, which brings together celebrities, politicians, and professionals. Earlier this month, social media companies first revealed that as of October, they had an average of 52 million active users per day. This is a 44% increase over the previous year.
The user-created video is Facebook Inc.Behind the success of the hit app TikTok, which influenced Instagram and Snap Of a corporation
Snapchat introduces a similar service. Also, Amazon.com Inc. Platforms that allow users to broadcast live video, such as Twitch and Alphabet, are also popular. Of a corporation
“The move to video is bigger than the move to mobile,” said Steve Huffman, Reddit CEO and co-founder. “We are just getting started.”
Reddit already allows users to upload and live stream videos, but with limited editing capabilities. By acquiring Dub Smash, Huffman said he could get more sophisticated user-created videos much faster than Reddit would have tried to develop on its own.
“The cost of video continues to fall, the technology for recording and encoding it is getting better and better, and in terms of advertising, video advertising is more effective,” he said. “They are more visceral and attractive.”
Founded in 2015, Dubsmash was last valued at $ 47.5 million in 2016 and raised about $ 20 million in 2019, according to private market data provider PitchBook. The Dubsmash app has been downloaded nearly 197 million times, according to app analytics firm Sensor Tower.
According to Dubsmash, about 30% of users log in every day to create videos. The company, which isn’t making money but is gaining followers by word of mouth, says it’s focused on spotlighting underrated creators and communities not found on mainstream social networks.
“Our focus is on showing another aspect of the Internet,” said Suchit Dash, co-founder and president of Dubsmash. He refused to provide a total Dubsmash user count, but said 70% were women and about a quarter of all black teens in the United States use the app.
Under the terms of the contract, Dubsmash will remain Apple’s independent app Co., Ltd.
And Android devices, and their video creation tools, will be integrated into the mobile version of the Reddit app. Dubsmash’s 12 employees, based in New York, will join approximately 700 Reddit employees.
Reddit’s deal with Dubsmash was previously reported by the technical publication The Information.
According to PitchBook, Reddit was valued at $ 3 billion after the final round of funding in February 2019 and has raised more than $ 550 million since its inception. Investors include Tencent Holdings Ltd. of China, venture capital firm Andreessen Horowitz, and rapper Calvin Broadus (well known as Snoop Dogg).
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Reddit snaps up Dubsmash to expand into the fast-growing video app market
Source link Reddit snaps up Dubsmash to expand into the fast-growing video app market