Reddit buys video-sharing app Dubsmash

Reddit Inc. said on Monday it purchased video-sharing app Dubsmash to expand its presence in one of the hottest corners of the internet: user-created video.

Reddit, 15, says Dubsmash, with its free app to create and share user-generated videos, is his first major acquisition; financial terms of the cash and stock agreement were not disclosed.

San Francisco-based Reddit is best known for its message boards on millions of topics and its digital “ask me anything” town hall meetings with celebrities, politicians and various experts. Earlier this month, the social media company revealed for the first time that it averaged 52 million daily active users in October, up 44% from a year earlier.

User-created video is behind the success of hit app TikTok, which inspired Facebook Inc.’s FB,
-4.08%
SNAP from Instagram and Snap Inc.,
-1.40%
Snapchat to introduce similar services. Platforms that allow users to stream live video, such as Amazon.com Inc.’s AMZN, are also popular.
-2.18%
GOOGL from Twitch and Alphabet Inc.,
-3.77%

GOOG,
-3.77%
Youtube.

“The transition to video will be bigger than the transition to mobile,” said Steve Huffman, CEO and co-founder of Reddit. “We are still at the beginning.”

An expanded version of this report appears on WSJ.com.

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