Voodoo acquires Gen-Z's best-selling BeReal app

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BeReal, French social media startup, acquired by Voodoo for $537 million.

French social network BeReal, launched in 2020, recently made headlines following its acquisition by Voodoo, the French games and mobile apps unicorn, for 500 million euros ($537 million). The deal, valuing BeReal just below its last valuation of $587 million in April 2022, comes at a crucial time for the struggling social media startup.

What is BeReal?

Every day, at a different time, all users of the social network receive a BeReal notification - Time to BeReal. They then have two minutes to take a photo including a selfie and a rear-facing photo merged into a single message. The concept was a hit with Gen Z, peaking in 2022 with 93.5 million downloads worldwide, according to Apptopia. By the end of 2022, success was beginning to wane. Downloads fell from 39.8 million in Q3 2022 to 31.5 million in Q4 2022, again according to Apptopia. A high churn rate has been accompanied by complaints about the platform's technical problems, such as crashes and frequent glitches. To date, the platform claims 40 million active users, half of whom use the app at least six days a week.

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BeReal faces financial difficulties

The relationship between BeReal and Voodoo began several years ago. Indeed, when it launched, Voodoo helped the social network expand into the United States. Voodoo co-founder and CEO Alexandre Yazdi revealed that BeReal is the only social media platform he currently uses. While acknowledging BeReal's financial difficulties, Yazdi expressed confidence in the platform's potential and its ability to support the company with new features and support.

According to Yazdi, BeReal's success stems from its "unique focus on authenticity": "BeReal is the most successful social media created in the last eight years. They've really created something unique. The majority of BeReal users post on the platform six days a week, which is a solid foundation for future growth. Yazdi, who has built up his three social networks, believes he is the ideal partner to "write the next page in the history" of Bereal. Voodoo plans to introduce messaging and video features to boost user engagement. The company has also announced its intention to monetize the platform by incorporating ads into users' feeds. Yazdi is reassuring that the ads are non-disruptive and will align with BeReal's mission of authenticity.

The acquisition by Voodoo represents a lifeline for BeReal, enabling it to continue its activities and potentially meet its user growth and financial challenges. The partnership with Voodoo, a company experienced in operating social platforms, looks promising. However, there are concerns about how users will react to ads in their feeds, potentially compromising the authenticity of the platform. Monetization via advertising is a common strategy for social media companies, so it remains to be seen how BeReal users will react.

While the addition of chat and video features may not be enough to keep users coming back, Yazdi remains optimistic that BeReal's differentiated strategy and commitment to authenticity will ultimately lead to growth. Maintaining BeReal's DNA and mission will be crucial to winning back users and ensuring the platform's success. "BeReal has generated impressive growth and loyalty from its users," says Alexandre Yazdi, co-founder of Voodoo. "We are delighted to merge our teams."

Aymeric Roffé, who currently heads the social media application Wizz (owned by Voodoo) will assume the role of CEO of BeReal. BeReal's current CEO and co-founder, Alexi Barreyat, will work with Roffé in the "short term" to ensure the company's integration, according to the companies.  

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