Reddit affirms Dubsmash buyout; aims at expanding in video app market

reddit-affirms-dubsmash-buyout-aims-at-expanding-in-video-app-market

Ever since the collapse of TikTok across various economies of the world, numerous companies and big brands have been rigorously looking forward to either acquiring vivid video platforms or creating new ones in an attempt to expand profusely in the global video app business space. In one similar instance, Reddit, one of the prominent social networking sites, has reportedly announced taking over TikTok alike video application- Dubsmash for an undisclosed transaction deal.

As per credible reports, TikTok rival Dubsmash is expected to retain its own brand and platform, while allowing Reddit to integrate its video creation tools. Moving further, it has been reported that app co-founders, Tim Specht, Suchit Dash, and Jonas Druppel would join Reddit anytime soon. The application has till date raised funding of about USD 20.2 million from investors including Index Ventures, Lowercase Capital, Sunstone Life, and Eniac Ventures.

Reddit, according to various reliable sources, cited that the deal would enable its users, who can already stream and upload videos, access to Dubsmash’s editing and short-video creation tools. This move comes on heels of potential success of TikTok, which prompted many social media companies to incorporate short-video services to their platforms, say for example, Snapchat’s recent announcement of launching ‘Spotlight’ in November in tandem with Facebook’s revelation of ‘Instagram Reels’ earlier this year.

Speaking on the successful acquisition, Steve Huffman, CEO and Co-Founder of Reddit, reportedly cited that this new transition to video is expected to be relatively bigger than the transition to mobile. He also added that Dubsmash highlights small creators, while Reddit raises a sense of belonging and community across vivid passions and topics, standing as a catalyzer for the growth of this platform in the overall business space.

On the other hand, Co-Founder of Dubsmash, Suchit Dash, cited that the video app is delighted to be a part of Reddit and is looking forward to continuing its journey to bringing out the best in class video products to its users. Moreover, it also believes in the idea of connecting creators around topics and interests, and this would allow it to grow the Dubsmash community.

Source Credit: https://www.wsj.com/articles/reddit-snaps-up-dubsmash-to-expand-in-fast-growing-video-app-market-11607912841