French social network BeReal recently made headlines with its acquisition by Voodoo, a French mobile game and app unicorn, for €500 million ($537 million). This deal, valuing BeReal at just under its last valuation of $587 million in April 2022, comes at a crucial time for the struggling social media startup.
Despite having 40 million active users, half of whom use the app at least six days a week, BeReal’s user growth has plateaued in recent months. The company was also facing financial difficulties with only about 10 months of runway left before it would need to raise more capital or be acquired to survive.
The relationship between BeReal and Voodoo dates back years when Voodoo helped the social network expand to the U.S. Voodoo’s co-founder and CEO, Alexandre Yazdi, revealed that BeReal is the only social media platform he currently uses. While acknowledging BeReal’s struggles, Yazdi expressed confidence in the platform’s potential and its ability to sustain the company with some new features and support.
Yazdi believes that BeReal’s success stems from its unique focus on authenticity, which users have craved. The majority of BeReal’s users post on the platform six days a week, providing a strong foundation for future growth. Voodoo plans to introduce messaging and video features to enhance user engagement. Additionally, the company intends to monetize the platform by incorporating ads into users’ feeds, aligning with BeReal’s mission of authenticity and ensuring ads are non-disruptive.
The acquisition by Voodoo represents a lifeline for BeReal, allowing it to continue operating and potentially address its user growth and financial challenges. The partnership with Voodoo, a company experienced in running social platforms, seems promising. However, there are concerns about how users will react to ads in their feeds, potentially compromising the authenticity of the platform. Monetization through ads is a common strategy for social media companies, but it remains to be seen how BeReal’s users will respond.
While the addition of chat and video features may not be enough to entice users back, Yazdi remains optimistic that BeReal’s differentiated strategy and commitment to authenticity will ultimately lead to growth. Maintaining the DNA of BeReal and its mission will be crucial in winning back users and ensuring the platform’s success.
Ultimately, it will be up to the users to judge whether BeReal can deliver on its promises and regain its momentum in the highly competitive social media landscape.
