Global M&A Ignites Amid COVID-19 Pandemic

Match Group, operator of the US's largest dating app Tinder,
acquires domestic native startup 'Hyperconnect'
US major game company Electronic Arts (EA) acquires Glu Mobile,
active mergers and alliances across industries

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The global mergers and acquisitions (M&A) market is booming amid the COVID-19 pandemic. Recently, domestic startups have begun major alliances and acquisitions triggered by COVID-19, such as a Korean startup being acquired by a U.S. startup for 2 trillion won.

According to foreign media including The Wall Street Journal (WSJ), Match Group, the U.S. operator of the world's largest dating app Tinder, announced it will acquire Korean startup Hyperconnect, which provides the video messenger 'Azar,' for $1.725 billion (approximately 1.933 trillion won). This is the second-largest deal among domestic startups, following Baedal Minjok's acquisition by Germany's Delivery Hero for 4.75 trillion won.

WSJ reported, "This deal is the largest acquisition in Match Group's history."

Hyperconnect is a video and artificial intelligence (AI)-based technology company offering services such as the video messenger Azar. Match Group operates over 40 dating apps mainly in North America, Europe, and Japan, and plans to maximize synergy by applying Hyperconnect's technology to its services through this acquisition.

In fact, Match Group's corporate value soared as the number of dating app users increased due to reduced face-to-face meetings amid the COVID-19 crisis.

Additionally, U.S. major game company Electronic Arts (EA) is reportedly acquiring mobile game company Glu Mobile for $2.4 billion (approximately 2.68 trillion won).

Founded in 2001, Glu Mobile owns mobile games such as 'Kim Kardashian: Hollywood' and 'Diner Dash.' EA, alongside Activision Blizzard by market capitalization, is one of the two pillars of the U.S. gaming industry, owning titles like 'FIFA,' 'Battlefield,' and the mobile game 'Star Wars: Galaxy of Heroes.'

With the mobile game market rapidly growing due to COVID-19, the synergy effect from the M&A between the two companies is expected to be maximized.

EA CEO Andrew Wilson added, "Glu Mobile will be able to secure growth potential by leveraging EA's intellectual property (IP), development assets, and global presence."

Driven by COVID-19, M&A activities across industries are becoming more active. Last year, Uber Technologies, the parent company of the world's largest ride-hailing service Uber, acquired U.S. food delivery company Postmates for $2.65 billion (approximately 3.17 trillion won).