Reddit has made an announcement that it has acquired the short video platform Dubsmash. The details of the deal have not been specified and still remain undisclosed. As per the deal, Dubsmash will retain its own platform, and Reddit will also integrate its video creation tools.
After the acquisition, the co-founders of Dubsmash, Suchit Dash, Tim Specht, and Jonas Drüppel will also join Reddit.
The app has raised a huge amount of USD 20.2 million from investors like Lowercase Capital, Eniac Ventures, Index Ventures, Sunstone Life, and Heartcore Capital.
Presently Dubsmash is one of the biggest rivals of TikTok, but struggled for many years after a brief stint of popularity in 2015 during its first manifestation as a lip-syncing video app.
Dubsmash was founded in the year 2015, and despite TikTok’s emergence, has grown at a steady pace. In January, Dubsmash crossed the mark of 1 billion video views per month. In comparison, TikTok reported about 37 billion monthly video views just in the US.
In the year 2017 Dubsmash started converting itself into a social platform and also shifted its headquarters from Berlin to Brooklyn. After launching the native videos in 2017, Reddit said usage has increased sharply in 2020. Reddit’s large amount of content is still text-based, however, along with video, gifs, and images often shared from other sources, so Dubsmash’s integration can help Reddit build its own video platform.
At the beginning of 2020, Dubsmash’s share of the US short-form video market was second only to TikTok when counted by app installs.
Dubsmash’s success credit goes to Black and Latinx users. While most of TikTok’s highest-profile stars are white, Dubsmash is known for its large communities of Black and Latinx content creators.
Reddit has its own set of issues with racism and has been criticized for not doing enough to stop hate speech.
Last year, founder and former chief executive officer Alexis Ohanian called for his position on Reddit’s board to be filled with a Black candidate when he stepped down, which current CEO Steve Huffman said the company would honor this as part of a larger effort to address hate speech on the platform. The position acquired by Ohanian was filled by Y Combinator CEO Michael Seibel.
Reddit calls the acquisition of Dubsmash its inclusion efforts. The app’s communities are driven by young, diverse creators, and females represent 70 percent of users, and almost a quarter of all Black teens in the US are on the platform.
The app’s founder, Suchit Dash said that 30 percent of its users create videos daily. Dash further also said that the app was great at enhancing underrepresented voices.
Instagram also introduced its new Reels feature this year to get a piece of the short video pie. Now, Reddit is also entering the short video market by acquiring TikTok‘s rival, Dubsmash.
In August, Facebook and Snap Inc. both approached Dubsmash with a potential offer to buy it. But Reddit won the deal.