Reddit doesn’t want to be left behind in the social media sector and has just announced the purchase of Dubsmash, a short video platform that is the main rival of TikTok, so fashionable in recent times.
The announcement has been made by the company itself in its official blog, although the economic terms of the agreement have not been revealed, although a company spokesperson has indicated to Reuters that it was based on a combination of cash and shares.
The buy-sell agreement between Reddit and Dubsmash thus becomes the first major acquisition by the social media firm in its 15-year history.
Reddit explained in its official statement that the agreement would give its users, who can now upload and stream videos, access to Dubsmash’s editing and short video creation tools, which will continue to operate independently, maintaining its platform and brand.
However, the entire Dubsmash team, including co-founders Suchit Cash, Jonas Drüppel and Tim Specth, will become part of Reddit.
Dubsmash’s track record is quite long and changing. It was born in 2014 with considerable success, but one year later its use has decreased considerably. The company was renewed and in 2017 it was back on track, although it has had to deal with TikTok, which continues to lead the short video sector.
Reddit continues to support and invest in the online video sector. In fact, in 2017 it launched native video for the first time and since then “we have seen tremendous growth and organic adoption of video by the community, as it has become an important part of how Reddit users create and connect,” the company said in its official statement.