BeReal Snags Savior: French Social App Finds Perfect Match in Voodoo

In a bright spot for the struggling social media space, French social app BeReal has secured a promising exit strategy. The company, known for its daily prompts urging users to capture "real" moments with both front-facing and selfie photos, was recently acquired by mobile game giant Voodoo for a cool €500 million ($537 million).

This acquisition represents a minor valuation decrease from BeReal's previous peak of $587 million in April 2022. Despite boasting 40 million active users, with half using the app at least six days a week, BeReal's growth had plateaued in recent months. Internal reports even suggested the company had limited runway left, making acquisition a necessity.

Here's where Voodoo steps in as the perfect partner. The French unicorn, already boasting experience building social networks, is confident in BeReal's core product. Their plan? To bolster user engagement with features like messaging and video, while also introducing non-intrusive, "authenticity-aligned" ads to generate revenue.

While this deal ensures BeReal's survival and provides resources for potential user growth, some concerns linger. The addition of ads, a mainstay for social media monetization, could clash with BeReal's focus on genuine user experiences. Similarly, the effectiveness of features like chat and video in reviving user interest remains to be seen, especially if they come bundled with an ad-filled feed.

Despite these potential roadblocks, Voodoo's co-founder and CEO, Alexandre Yazdi, remains optimistic. He emphasizes BeReal's strong foundation and user base, highlighting their dedication to preserving the app's core mission of authenticity.

Only time will tell if Voodoo can successfully navigate the challenge of reviving user growth while staying true to BeReal's unique charm. But for now, this acquisition appears to be a win-win, offering BeReal a lifeline and Voodoo a valuable addition to its social media portfolio.