$1.9 Trillion Acquisition in the US, Korean Startup Hits the Jackpot (Comprehensive)

Match Group Acquires Hyperconnect
Achievement Through Development of Video Messenger 'Azar'

[Asia Economy New York=Correspondent Baek Jong-min] Hyperconnect, a domestic startup providing the video messenger ‘Azar,’ has been acquired by Match Group, the U.S. company operating the world’s largest social dating application ‘Tinder.’ The deal is valued at 2 trillion KRW.

According to foreign media including The Wall Street Journal (WSJ), on the 9th (local time), Match Group agreed to acquire 100% of Hyperconnect’s shares for $1.725 billion (approximately 1.933 trillion KRW). This transaction is the second-largest acquisition of a domestic internet startup, following the acquisition of Baedal Minjok by Germany’s Delivery Hero (DH) for $4 billion (approximately 4.75 trillion KRW).

Match Group operates over 40 dating apps including Tinder and ‘OkCupid,’ mainly in North America, Europe, and Japan. WSJ reported that this deal is the largest acquisition in Match Group’s M&A history. Hyperconnect is a video and artificial intelligence (AI)-based technology company that provides services such as the video messenger Azar.

Azar is an app that allows video calls with strangers worldwide. Its AI-based translation service is a key advantage. It is available in 230 countries, with cumulative downloads reaching 540 million. The global user base accounts for 99%, with particularly high popularity in the Middle East region.

Shar Dubey, CEO of Match Group, added, "We will create various synergies by applying Hyperconnect’s technology to Match Group’s services and actively support investment in Hyperconnect’s innovative technology."

Ansang-il, CEO of Hyperconnect, said, "I am pleased to prove that even a small startup can create global business opportunities if it has innovative technology."

WSJ reported that as direct meetings decreased due to the COVID-19 pandemic, the number of dating app users increased, raising the corporate value of these companies. Match Group’s stock price has surged 30% over the past six months, reaching a corporate value of $41 billion.

The acquisition deal is known to have been made through Match Group’s active pursuit. Hyperconnect will continue to operate independently after the acquisition.