Reddit Acquires Dubsmash, Opposing TikTok

JAKARTA - Social networking company Reddit intends to buy the short video platform Dubsmash. This step was taken by Reddit to find a gap in the popularity of the TikTok application.

Although the terms of the deal were not disclosed, a Reddit spokesman said the acquisition was based on a combination of cash and stock.

ByteDance's TikTok success has prompted many social media companies to add short video services to their platforms, with Snapchat launching "Spotlight" in November and Facebook launching "Instagram Reels" earlier this year.

Both Facebook and Snap reportedly approached Dubsmash earlier this year and talks have progressed far enough for discussions about price tags in the "hundreds of millions of dollars."

Reddit says that the agreement with Dubsmash will provide access to Dubsmash's editing tools and short video creation tools. Previously, Reddit had allowed users to upload and stream videos.

Founded in 2013, Dubsmash became popular as a platform that allows its users to create lip-sync or lip-sync videos to popular movie dialogue, and share them with other users.

The Dubsmash mobile app has been downloaded 196.8 million times globally since its launch, according to analytics firm Sensor Tower. In comparison, the TikTok mobile app has been downloaded 2.6 billion times globally since its launch.

San Francisco-based Reddit added that Dubsmash will maintain its own platform and brand. The entire Dubsmash team, including Suchit Dash co-founders, Jonas Drüppel and Tim Specht, will join Reddit.