In a major win for the Korean startup ecosystem, Datinghouse Match Group Announced this afternoon It will buy social networking company HyperConnect for $ 1.73 billion for a combined cash and stock deal.
Hyperconnect, which according to the company is projected to have $ 200 million in revenue (up 50% by 2019) in 2020, offers two apps – Azar and Hakuna Live – that allow users to connect with each other during language barriers Give. There are two complements, with Azar focusing on one-to-one video chat and Hakuna Live focusing on the online live broadcast market. In their press statement, the companies said that 75% of Hyperconnect’s revenue is generated in Asia.
The match is the largest takeover by the group so far, with popular dating apps Tinder and Hinz also having several other mixed properties.
One of the themes of the story of acquisition and hyperconnect is technology. The company described it as “manufacturing”First mobile versionOf ” Webrtc, Now a well-developed standard designed to provide flexible peer-to-peer connections between users without relying on a company to serve as a middleman server.
For example, a video chat between two participants will be broadcast directly between them using WebRTC, without the video being transmitted via a server without hyperconnect. It is designed to improve reliability by removing latency while reducing the cost of bandwidth to serve hyperconnect. WebRTC is now a well-positioned open-source standard with companies Like Google uses it in products like Google Meet.
In addition to its innovative work on WebRTC, HyperConnect built the infrastructure to support two users who speak different languages and interact with each other directly through their app using real-time translation Huh. In a marketing post on Google Cloud, Hyperconnect is a marquee customer of cloud service speeches, real-time translation and messaging APIs.
In the companies’ joint press statement, the two sides emphasized R&D and engineering as key wins for the deal. The question arises as to what the Match Group is looking at with its massive new buyout? While the group has largely limited itself to dating, live broadcasts and other media verticals may well be in their sights as it acquires technology from Hyperconnect.
The deal is expected to close in 2021Q2.