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They are neither plant, animal or fungi. Many algae are single celled, however some species are multicellular. Many, but not all of red and brown algae are multicellular. Red and brown algae are common in marine environments. Some green algae are multicellular.
Quick Answer. According to HowStuffWorks, some types of algae reproduce asexually through the division of one cell into two or even more new cells that are genetically similar to the original parent cell. Other types of algae engage in sexual multi-cellular reproductive cycles to procreate.