Dubsmash, a short video sharing app which offers services similar to what TikTok offers is set to be acquired by divergent social network company Reddit. Reddit announced the upcoming acquisition however it failed reveal any financial terms of the deal.
Nonetheless, Reddit’s spokeswoman said payment of the deal will be a blend of cash and stock.
The success story of the embattled Chinese company has inspired many social platforms to introduce short video sharing segments on their various platforms.
Notable social networks which introduced short video services in 2020 include Facebook Inc. (FB) which introduced ‘Instagram Reels’ in August and Snapchat Inc. (SNAP) which introduced ‘Spotlight’ last month.
In a detailed blog post by Reddit, the firm says this acquisition will give its clients access to upload, edit and share short videos on Dubsmash using the platform’s editing tools.
After the deal has been closed, the entire labor force working for Dubsmash will be absorbed by Reddit.