Reddit Buys Video-Based Social Media App Dubsmash

Reddit announced Sunday it has acquired the video-based social media platform Dubsmash.

What Happened: The San Francisco-based company said it would “integrate” Dubsmash’s video creation tools in Reddit that will “empower” its own creators to “express themselves in original and authentic ways.”

“Dubsmash elevates under-represented creators, while Reddit fosters a sense of community and belonging across thousands of different topics and passions,” said Reddit CEO Steve Huffman. “It’s clear that our missions closely align and that our community-focused platforms can coexist and grow as we learn from each other.”

No terms related to the purchase were disclosed by Reddit. Dubsmash’s three co-founders, Suchit Dash, Jonas Drüppel, and Tim Specht, are moving to Reddit.

Why It Matters: Reddit said Dubsmash’s communities are highly diverse with 25% of U.S. Black teens present on the platform and 70% of its users are females.

Reddit launched its own video service in 2017 and said video posts — which are in millions — doubled in 2020.

Both Facebook Inc FB and Snap Inc SNAP were interested in purchasing Dubsmash in the backdrop of Microsoft Corporation’s MSFT attempted purchase of Chinese short-form video app TikTok.

Market News and Data brought to you by Benzinga APIs

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