Reddit introduced that it has acquired quick video platform Dubsmash. The deal’s phrases had been undisclosed. Dubsmash will retain its personal platform and model, and Reddit will combine its video creation instruments. Its co-founders, Suchit Dash, Jonas Drüppel and Tim Specht, will be part of Reddit.
According to Crunchbase knowledge, the app has raised $20.2 million from traders together with Lowercase Capital, Index Ventures, Eniac Ventures, Heartcore Capital and Sunstone Life.
Dubsmash is now one among TikTok’s largest rivals, however struggled for a number of years after a quick stint of recognition in 2015 throughout its first incarnation as a lip-sync video app. In 2017 it started remodeling itself right into a social platform and moved its headquarters from Berlin to Brooklyn. By the start of this 12 months, Dubsmash’s share of the United States’ short-form video market was second solely to TikTok when counted by app installs, and it reportedly held acquisition talks with Facebook and Snap.
How Dubsmash revived itself as #2 to TikTok
Credit for a lot of Dubsmash’s success goes to Black and Latinx customers. While a lot of TikTok’s highest-profile stars are white, Dubsmash is understood for its massive communities of Black and Latinx content material creators. The polarization between the 2 apps started to realize extra consideration earlier this 12 months, when the New York Times revealed a chunk about how dance strikes by Black Dubsmash stars are incessantly appropriated with out credit score by TikTok influencers, which suggests their creators miss out on alternatives like bigger followings, model offers and trade connections.
Reddit has its personal points with racism, and has been criticized for not doing sufficient to cease hate speech or giving moderators of subreddits focused by racist trolls sufficient assist.
Last 12 months, founder and former chief government officer Alexis Ohanian referred to as for his place on Reddit’s board to be stuffed with a Black candidate when he stepped down, which present CEO Steve Huffman stated the corporate would honor as half of a bigger effort to deal with hate speech on the platform introduced throughout anti-racism demonstrations after the killing of George Floyd by a police officer. Ohanian’s place was stuffed by Y Combinator CEO Michael Seibel.
Reddit names YC’s Michael Seibel to board, following co-founder Alexis Ohanian’s exit
In its announcement in the present day, Reddit linked its acquisition of Dubsmash to its inclusion efforts, acknowledging that the app’s “communities are pushed by younger, various creators—about 25 p.c of all Black teenagers within the U.S. are on Dubsmash, and females signify 70 p.c of customers.”
It additionally stated the combination of Dubsmash’s video creation instruments will allow Reddit’s customers to “categorical themselves in unique and genuine methods which might be endemic to our communities.”
Since launching native movies in 2017, Reddit stated utilization has elevated sharply, rising 2X in 2020 alone. Much of Reddit’s content material continues to be text-based, nonetheless, with video, gifs and pictures typically shared from different sources, so Dubsmash’s integration might help Reddit construct out its personal video platform.