In a social media landscape marred by recent shutdowns and plummeting valuations, French social network BeReal has emerged as a rare success story. The company, known for its unique approach of prompting users to take spontaneous photos with both the front and back cameras, has been acquired by Voodoo, a French mobile game and app unicorn, for €500 million ($537 million).
Acquisition Details and Background
BeReal’s acquisition by Voodoo marks a significant milestone for the social media startup. The deal values BeReal at a slight discount from its last valuation of $587 million in April 2022. The startup, which has 40 million active users, raised capital from prominent venture firms such as Accel, Andreessen Horowitz, and Coatue. Despite its popularity, BeReal faced financial challenges and plateauing user growth in recent months. In March, it was revealed that the company had only ten months of runway left, necessitating either a new funding round or an acquisition to stay afloat.
Voodoo’s co-founder and CEO Alexandre Yazdi expressed his enthusiasm for BeReal, noting that it is the only social media platform he personally uses. Yazdi acknowledged the app’s recent struggles but is confident that with some new features and support, BeReal can sustain and grow its user base. He praised BeReal’s unique approach and its 40 million users, most of whom engage with the app six days a week, as a strong foundation to build upon.
The Path Forward with Voodoo
Voodoo plans to integrate new features such as messaging and video capabilities to enhance user engagement on BeReal. Additionally, the introduction of ads is on the horizon, with a focus on maintaining the app’s core value of authenticity. BeReal had not yet monetized its platform, and this acquisition will provide the necessary capital and support to start generating revenue.
Yazdi emphasized that Voodoo’s experience in building social networks makes it the ideal partner for BeReal’s next phase. He assured users that the company will maintain BeReal’s mission of authenticity while expanding its features and reach. The introduction of ads, although a standard monetization strategy, will be designed to be non-disruptive and fit seamlessly with the user experience.
Reflecting on the Acquisition
From my point of view, this acquisition represents the best-case scenario for BeReal. The company was at a critical juncture, and Voodoo’s support ensures that BeReal can continue to operate and innovate. As a regular user of BeReal, I am optimistic about its future under Voodoo’s stewardship.
However, I have some reservations about the planned monetization through ads. While it is a common revenue model for social media platforms, the introduction of ads might affect the user experience, which is centered around authentic, ad-free interactions. The challenge will be to incorporate ads without alienating the existing user base.
Additionally, the planned features like messaging and video posting might enhance user engagement, but they need to be implemented thoughtfully to ensure they align with BeReal’s core values. The app’s unique selling point has always been its simplicity and authenticity, and any changes must preserve these qualities to retain its loyal users.
Conclusion
BeReal’s acquisition by Voodoo is a beacon of hope in the turbulent social media startup landscape. With Voodoo’s expertise and resources, BeReal has the potential to overcome its financial challenges and stagnating growth. The road ahead involves balancing new monetization strategies with maintaining the app’s core mission of authenticity. As the social media space evolves, BeReal’s journey under Voodoo’s wing will be closely watched by users and industry experts alike.
The success of this acquisition ultimately hinges on how well Voodoo can enhance BeReal’s platform without compromising the authentic experience that users love. As Yazdi said, “We are never going to break that DNA of authenticity.” Only time will tell if this promise holds true.
