Aggressive Pursuit by US Global Company Match Group with Market Cap of 47 Trillion Won
500 Million Downloads in 230 Countries... Synergy Expected from North American Market Entry
[Asia Economy Reporter Bu Aeri] Domestic startup Hyperconnect's acquisition by Match Group, the developer of the social dating application 'Tinder,' for an amount reaching 2 trillion KRW has drawn attention as it signifies another recognition of the value of a native startup in the global market.
On the 10th, Hyperconnect announced that it had agreed to a contract for Match Group, a Nasdaq-listed company in the U.S., to acquire 100% of Hyperconnect's shares for $1.725 billion (approximately 1.933 trillion KRW). Hyperconnect plans to maintain its independent management system even after this agreement.
Founded in 2014 by young graduates from Seoul National University and Pohang University of Science and Technology, Hyperconnect is a video and artificial intelligence (AI)-based technology company providing global video messenger services such as 'Azar.' Azar achieved a so-called big hit, recording sales of 168.9 billion KRW five years after its founding, growing 50 times. Match Group is a global company with a market capitalization of 47 trillion KRW, operating over 40 global social apps including Tinder, with dominant market shares in Europe and Japan.
This acquisition was reportedly made possible by Match Group's active courting. Match Group, which had the challenge of entering the Asian market, targeted Hyperconnect's video technology and know-how in operating Azar. Especially after the COVID-19 pandemic, as all social apps incorporated video services, Azar's video service was likely attractive to Match Group, which operates Tinder based on images.
Shar Dubey, CEO of Match Group, said, "As people spend more time online, they want richer and deeper experiences," adding, "Hyperconnect's live video technology provides a powerful means for users worldwide to connect with new people and new cultures."
Hyperconnect's global video messenger Azar is more famous overseas than in Korea. Azar is available in 230 countries worldwide in 19 languages and has recorded over 540 million downloads. Notably, 99% of its users are overseas.
Azar is an app that allows one-on-one video calls with randomly connected strangers. Using Hyperconnect's algorithm technology, it connects users worldwide and recommends connections based on users' preferences and interests. Users can also select the country they want to video call. It is especially popular in the Middle East, earning the nickname "KakaoTalk of the Middle East."
With this contract, Hyperconnect, which was aiming to enter the North American market, can now create synergy through cooperation with Match Group. Hyperconnect plans to focus on stabilizing the service of 'Slide,' a video-based social dating app recently launched in the North American market. Various collaborations, including technology integration with services under Match Group, are also planned.
Hyperconnect CEO Ahn Sang-il said, "In an environment where competition in the global social app market is intensifying, we joined hands with Match Group for greater growth," adding, "We are honored to welcome Match Group, which values the worth of technology, as our partner."
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