Reddit Acquires Ad-Optimization Company Memorable AI [Video]

Reddit (RDDT) made its first acquisition since its initial public offering earlier this year, the social-media company on Thursday announcing that it had purchase advertising technology company Memorable AI.

The company uses AI models to analyze reactions to content to determine what resonates with specific audiences, according to Memorable AI’s web site.

Shares of Reddit were recently down about 1%, handing back gains seen earlier in the session as broader markets declined. The stock has gained about 25% since the company’s initial public offering (IPO) in March. Terms of the deal weren’t disclosed.

The news comes ahead of Reddit’s latest quarterly results, scheduled for release next week.

Memorable AI uses machine learning to provide “actionable estimates of the impact of ad creatives across click-through, engagement, and view-through rates, as well as brand lift and conversion rates,” Reddit said.

Acquiring Memorable AI could bolster Reddit’s efforts to integrate AI into its offering. The acquisition …