Facebook and Snap, the company that owns the Snapchat app, have recently held talks to buy a TikTok competitor named Dubsmash, according to the report. Reports.
This interest highlights short video applications as Microsoft is trying to strike a deal to buy rival TikTok.
The lip-syncing app Dubsmash – which has been in existence since 2013 – has grown in popularity with a host of other TikTok competitors.
Facebook and Snap have reached out to rival TikTok about a deal in recent weeks, and the source said the takeover talks had progressed enough to include discussions over a price in the hundreds of millions of dollars.
The interest in Dubsmash illustrates how big tech companies are rushing to take advantage of the growing consumer interest in short videos, a category identified by TikTok’s explosive growth.
With the US government threatening to ban TikTok due to its Chinese ownership, the uncertainty about the app’s future has increased the appeal of competing apps such as Triller, Byte and Dubsmash.
Dubsmash and other video-sharing platforms have recently seen an increase in download numbers and user numbers as 100 million monthly Tik Tok users in the US prepare for a future without the app.
TikTok is currently facing an executive order from (Donald Trump) prohibiting any business transactions as of mid-September with the app and its Chinese parent company, ByteDance.
Although it is unlikely that a nationwide ban will be enforced, the threat to TikTok was enough to make users panic about where to make videos and find their favorite content creators.
Reports indicate that although Dubsmash acquisition talks with Facebook and Snap have occurred in recent weeks, the discussions are no longer active.
A Snap spokesperson said in a statement: “We like the team but are not in active acquisition talks.
Facebook cited the company’s policy of not commenting on rumors or speculation, but confirmed that it was not in active discussions with Dubsmash.
At the same time, Facebook and Snap are working on their own features derived from the popular TikTok app.
Facebook-owned Instagram launched the (Reels) feature in the United States earlier this month, while Snap started rolling out the music overlay feature for videos.
Dubsmash was an early adopter of the audio-video linking format, which was later made popular by Tik Tok.
And according to what was reported by The New York Times, Dubsmash is where some of the most popular dances appeared on the Internet, before they spread to Tik Tok and were chosen by the most famous content creator on the Chinese platform.
However, Dubsmash has not seen the same level of success as TikTok, nor competitors like Triller and Likee.