It seems the month of acquisitions has been going on. A few days back Twitter acquired Squad a multi-streaming user platform. And now Reddit acquires Dubsmash in order to compete with TikTok its rival. The company says that the platform will stay independent as a brand and app but the teams will work together to bring specific features to the social-media platform app. With the 44% year-after-year growth that the social media platform has been seeing, it is obvious that this acquisition will be very beneficial for the platform.
About the acquisition
As of now, we do not know much about the finances of the deal. But according to some reports, the deal was divided between cash and stock. The acquisition will also increase the functionality of the platform as some of the features of the video app Dubsmash will be made available on it. Users who streamed and uploaded videos on Reddit will be able to access the editing features of Dubsmash.
The creative angle of the app Dubsmash will be game-changing for the platform. Its product is already very intuitive and with the teams of Reddit and Dubsmash working together, it will be even better.
Dubsmash and Reddit’s fast-growing audience
Reddit reported a few days back that the company has over 52 million daily active users. This is just a fraction of the user base of other popular apps like Facebook, Instagram, Snapchat, and Twitter. But the growth rate is phenomenal at 44% compared to the 12% growth rate of Facebook or 29% of Twitter.
Adding to this fast-growing community of users the user base of Dubsmaaash will add up. The company also has a huge base with 70% of its users being female. Reports also say that the app also registers over 1 billion views every day. And even 30% of its user base comes online every day to upload videos.
Now the combining audiences of both the platform will help in each other’s growth. And I am pretty optimistic about the fact the growth rate of Reddit will increase even further in the upcoming time.
What are your thoughts on the fact that Reddit acquires Dubsmash? And how will it be beneficial for the company? Let us know in the comments below. Also, if you found our content detailed and informative do like it and share it with your friends.