Match Group Buys Korean App Developer Hyperconnect For $1.7B

Match Group Inc MTCH, the Dallas-based company with a portfolio that includes the dating platforms Tinder, Match and PlentyOfFish, has acquired Hyperconnect, a privately owned South Korean social discovery and video technology company, for $1.725 billion in cash and stock.

About Hyperconnect: Founded in 2014, Hyperconnect first gained recognition with Azar, a one-on-one live video and audio chat app that is available in 19 languages across 230 countries. Azar has accumulated more than 540 million global downloads.

Hyperconnect also offers Hakuna Live, the social interactive live-streaming app has been downloaded more than 23 million times since its 2019 debut, primarily in South Korea and Japan.

Last month, the company introduced Slide, a video-based dating and social discovery app that was initially rolled out in select markets across North America.

Hyperconnect, which operates subsidiaries in Japan and Singapore, is credited with creating the first mobile version of WebRTC, the digital standard to enable direct peer-to-peer connections between users without requiring a third-party server.

What Happens Next: In announcing its acquisition, Match Group noted Hyperconnect is a profitable company that generated more than $200 million in revenue in 2020, a 50% increase from 2019, with 75% of its revenue coming from the Asian markets.

"As more of our lives move online, people are looking for richer and deeper experiences," said Shar Dubey, CEO of Match Group, adding that his company plans to "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."

MTCH Price Action: Match Group shares were up 7.89% at $171.40 at last check Wednesday.