French social network BeReal, known for its unique approach to social media, has been acquired by Voodoo, a French mobile game and app unicorn, for €500 million ($537 million). The deal values BeReal at a minor haircut off its last valuation of $587 million in April 2022. BeReal, which has 40 million active users, half of whom use the app at least six days a week, was struggling to grow its user base and was facing financial difficulties.
Voodoo, which has built three social networks of its own, has a long history with BeReal, having helped the company expand to the US. Voodoo CEO Alexandre Yazdi, who is also a user of BeReal, believes that the company’s unique approach to social media, which emphasizes authenticity, is what sets it apart from other platforms.
Yazdi plans to roll out new features, such as messaging and video, to boost user engagement and incorporate ads into users’ feeds. However, he emphasized that the company will prioritize authenticity and ensure that ads are not disruptive to users. BeReal had yet to monetize its platform, but Yazdi believes that the company’s differentiated strategy is well-positioned to succeed.
The acquisition is seen as a positive development for BeReal, which was facing financial difficulties and may have had to shut down otherwise. Voodoo’s support and resources will allow the company to continue operating and potentially grow its user base. However, some users may be hesitant about the addition of ads to the platform, which could impact the company’s ability to attract new users and retain existing ones.
