- The world’s biggest online dating app operator acquired South Korean video tech unicorn
- Expects to expand in the Asian market and apply new features to its existing apps
Match Group, the owner of the world’s most popular dating app Tinder acquired South Korean tech and social media unicorn Hyperconnect Inc. As the company announced today, the Dallas-based tech giant paid the combined $1.73 billion for 100% of its shares.
The purchase of the South Korean company is the biggest ever deal in Match Group’s history. The Nasdaq-listed company (MTCH) owns and operates the largest global portfolio of popular online dating services including Tinder, Hinge and OkCupid.
The significance of Hyperconnect
Launched in 2014, Hyperconnect is an IT company that develops software and mobile applications based on Artificial Intelligence (AI). The company runs two highly popular apps Azar and Hakuna Live.
Video chat app Azar connects over 100 million global users across 230 countries. It allows real-time connections for like-minded people worldwide and instantly translates their voice or text messages into the language they speak.
Hakuna Live is an interactive live-streaming app for group broadcasts, that also enables virtual gifting and augmented reality-powered avatars and profile enhancements. The app has been downloaded more than 23 million times since its launch in 2019 and is highly popular in Japan and South Korea.
Hyperconnect has generated over $200 million in revenue within the past year, which is a 50% increase compared to 2019.
On the flipside
- Match Group (MTCH) stock price increased by 2.9% to $159.38 after the announcement.
- Mobile dating has surged up to 260% in Southeastern Asia within the past years.
- The usage of socializing apps increased during the pandemic.
Expansion to Asian market
Nearly 75% of Hyperconnect’s revenue comes from the Asian market and the acquisition of Hyperconnect allows the world’s largest dating apps operator to further expand into it.
The Match Group CEO Shar Dubey said Hyperconncet’s product suite and regional footprint come in line with Mach Group’s. According to her, more people are moving online and looking for richer and deeper experiences, thus Match Group might be applying new features to its existing online dating app portfolio:
We will leverage our deep bench of expertise to help accelerate Hyperconnect's already-impressive growth, look to deploy Hyperconnect's technologies across our existing portfolio, and continue to invest in their growth.
The acquisition comes in a time when the live steam market is on the rise in Asia due to the global pandemic. The cash and stock deal is expected to be completed in the second quarter of 2021.