Spell
2022
Why
Added machine-learning infrastructure talent.
Impact
Added machine-learning infrastructure talent.
Outcome
Supported Reddit's work on recommendations, safety and ad ranking.
Reddit, Inc.
Acquisitions
3
Major Deals Covered
This page covers 3 major deals from 2014 to 2022, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Alien Blue | 2014 | Undisclosed | Added mobile app capability and helped Reddit move from a desktop-centered experience toward official mobile distribution. |
| Dubsmash | 2020 | Undisclosed | Added video product talent and short-form media capability. |
| Spell | 2022 | Undisclosed | Added machine-learning infrastructure talent. |
2022
Added machine-learning infrastructure talent.
Added machine-learning infrastructure talent.
Supported Reddit's work on recommendations, safety and ad ranking.
2020
Added video product talent and short-form media capability.
Added short-form video talent and creator tools.
Reddit folded Dubsmash's team and technology into native video; the standalone Dubsmash app was later shut down.
2014
Added mobile app capability and helped Reddit move from a desktop-centered experience toward official mobile distribution.
Gave Reddit an established iOS client and its developer as a starting point for an official mobile app.
Reddit later launched its own official apps and retired Alien Blue.
Reddit's growth plan has three parts. First, deepen ad products for performance marketers: Dynamic Product Ads, conversation ads, better measurement and integrations with tools like Smartly. Second, grow outside the U.S. using machine translation of posts into languages such as French, Spanish, German and Portuguese; international revenue rose 84% to $167M in Q2 2026. Third, make Reddit a destination for search and answers through Reddit Answers and on-platform search, reducing dependence on Google referrals while continuing to license data to AI developers.
Reddit makes money mainly from advertising. In Q2 2026, ad revenue was $762M of $805M total (about 95%), sold as promoted posts, video, conversation and search placements, and catalog-based Dynamic Product Ads targeted by community and interest. The remaining 'other' revenue ($43M in Q2 2026) comes chiefly from data licensing deals that give companies such as Google and OpenAI structured access to Reddit content, plus Reddit Premium and other user products. Volunteer moderators curate most communities, which helps keep Reddit's GAAP gross margin above 90% (91.3% in Q2 2026).
In July 2022, Reddit acquired MeaningCloud, an enterprise Natural Language Processing (NLP) and text analytics pioneer based in Spain, integrating MeaningCloud's semantic AI models directly into Reddit to enhance machine learning safety, ad targeting, and multi-language translation.
In September 2022, Reddit acquired Spiketrap, an AI-powered contextual intelligence platform specializing in gaming and online conversation analysis, strengthening Reddit's contextual advertising relevance for major corporate brands.
In December 2020, Reddit acquired short-form video creation platform Dubsmash, integrating Dubsmash's video editing tools, audio sync technology, and diverse creator infrastructure natively into the Reddit mobile video player.
In October 2014, Reddit acquired 'Alien Blue', the premier unofficial third-party iOS client built by developer Jase Townsend, hiring Townsend and utilizing Alien Blue's codebase as the foundational starting point for Reddit's official mobile iOS app.
Reddit integrates acquired engineering teams directly into core product pods (Search, Ads, Machine Learning, Safety), using acquired IP to accelerate internal product roadmaps while preserving a unified, smooth user interface.
Reddit established multi-year strategic commercial partnerships with Google (combining Data API licensing with Vertex AI cloud infrastructure) and OpenAI (integrating Reddit content into ChatGPT while building Reddit AI features on OpenAI models).
Reddit held $2.79 billion in cash and securities at mid-2026. It has prioritized organic product investment and a $1 billion share repurchase program announced in February 2026, with past acquisitions mostly small technology and talent deals.
In December 2020, Reddit acquired short-form video creation platform Dubsmash, integrating its video creation and editing tools into Reddit’s native apps to accelerate video consumption across subreddits.
In July 2022, Reddit acquired MeaningCloud, an AI-based text analytics and natural language processing (NLP) firm, to enhance contextual ad targeting, language translation, and automated content moderation.
In September 2022, Reddit acquired Spiketrap, an AI-powered contextual advertising intelligence company, enabling advertisers to target relevant conversations across subreddits with brand safety verification.
In October 2014, Reddit acquired Alien Blue, the most popular third-party iOS Reddit client built by developer Jase Townsend, re-releasing it as the official Reddit app before building its current modern codebase.
Reddit made targeted talent and technology acquisitions to upgrade its real-time push notification and feed recommendation algorithms, driving higher user retention and app open rates.
No, Reddit focuses on tuck-in technology acquisitions that enhance machine learning, natural language understanding, video infrastructure, and automated advertising tools.
Reddit typically absorbs engineering teams into core infrastructure squads, deprecates standalone apps (such as sunsetting Dubsmash in 2022), and redeploys the underlying video and AI technology into Reddit core.
Armed with over $1.7 billion in cash post-IPO, Reddit evaluates strategic acquisitions in generative AI search tools, machine translation platforms, and conversational commerce technologies.
Compare corporate acquisition records, deal values, and strategic targets
Explore Reddit
Core profile pages, founders and related research hubs for this company.