Jakarta, Selular.ID – Social networking company Reddit, reportedly bought the short video platform Dubsmash, to break the dominance of Tiktok’s social media.
Detailed information regarding the purchase of Dubsmash was not detailed by the company but by a Reddit spokesman, as quoted from reutersMonday (14/12) said the acquisition took place through a combination of cash and shares.
It is undeniable that the success of Tiktok made by ByteDance has encouraged many social media companies to also add short video services to their platforms, such as Snapchat which launched the Spotlight feature in November, and Facebook launched Instagram Reels earlier this year, which is predicted to rival Tiktok.
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In a blog post, the agreement was made, allowing users to upload and stream videos through Dubsmash’s editing access and the short video creation tools included in it.
Not only that, Steve Huffman Chief Executive and co-founder of Reddit said that by acquiring Dubsmash, Reddit would also get more sophisticated videos and fast user-generated edits, this would not have happened if Reddit preferred to develop similar applications themselves.
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“Video costs continue to fall, the recording and coding technology continues to improve, and from an advertising standpoint, video advertising is getting more and more effective,” he said.
Dubsmash itself was founded in 2015, was valued at around $ 47.5 million in 2016 and has raised around $ 20 million in profits in 2019, according to PitchBook. This application, according to Sensor Tower analysis, has been downloaded nearly 197 million times worldwide.
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