dating juggernaut match buys seoul-based hyperconnect for $1.73b, its biggest acquisition ever
Match Group Acquires Hyperconnect for $1.73 Billion
A significant development has occurred within the Korean startup landscape. Match Group, a leading dating company, has announced the acquisition of social networking firm Hyperconnect in a transaction valued at $1.73 billion, comprising both cash and stock.
Hyperconnect's Financial Performance and App Portfolio
Hyperconnect anticipates generating $200 million in revenue for 2020, representing a 50% increase compared to its 2019 earnings. The company operates two primary applications: Azar and Hakuna Live.
These apps facilitate connections between users, overcoming language barriers. Azar specializes in one-on-one video conversations, while Hakuna Live caters to the online live broadcasting sector. Notably, 75% of Hyperconnect’s revenue is derived from the Asian market.
Largest Acquisition for Match Group
This acquisition marks Match Group’s largest to date. Match Group’s portfolio already includes well-known dating applications such as Tinder and Hinge, alongside a variety of other digital properties.
The Role of Technology in the Acquisition
A central aspect of this deal and Hyperconnect’s success is its technological innovation. The company developed what it claims was the initial mobile implementation of WebRTC.
WebRTC is a widely adopted standard designed to establish robust, peer-to-peer connections between users, eliminating the need for a central server intermediary. This approach enhances reliability by minimizing latency and reducing bandwidth costs for the service provider.
WebRTC and Real-Time Translation Capabilities
Video chats utilizing WebRTC are transmitted directly between participants, bypassing Hyperconnect’s servers. WebRTC is now a prevalent open-source standard, utilized by companies like Google in products such as Google Meet.
Beyond its work with WebRTC, Hyperconnect has created infrastructure enabling real-time translation for users communicating via speech and text within its applications. The company is highlighted as a key customer of Google Cloud’s speech, real-time translation, and messaging APIs.
Future Implications for Match Group
Both companies emphasized the importance of research and development (R&D) and engineering expertise as key benefits of the acquisition. This raises questions about Match Group’s future plans with its new asset.
While currently focused on the dating market, Match Group may explore opportunities in live broadcasting and other media verticals leveraging the technology acquired from Hyperconnect.
Deal Completion Timeline
The acquisition is projected to be finalized during the second quarter of 2021.
Danny Crichton
Danny Crichton: Background and Expertise
Danny Crichton currently holds the position of investor at CRV, a venture capital firm. His professional background includes a significant period as a contributing writer for the technology news website, TechCrunch.
Professional Roles and Contributions
As an investor with CRV, Crichton focuses on identifying and supporting promising startups. Prior to this role, he established himself as a respected voice in the tech industry through his writing at TechCrunch.
His contributions to TechCrunch encompassed a wide range of topics, offering insights into emerging technologies and the startup ecosystem. He provided analysis and commentary on industry trends.
Key Skills and Areas of Focus
- Venture Capital: Expertise in evaluating investment opportunities and supporting portfolio companies.
- Technology Journalism: A proven track record of reporting on and analyzing the technology sector.
- Startup Ecosystem: Deep understanding of the dynamics and challenges faced by startups.
Crichton’s combined experience in venture capital and technology journalism provides him with a unique perspective on the innovation landscape. He is well-positioned to identify and nurture the next generation of technology leaders.
His work at both CRV and TechCrunch demonstrates a commitment to fostering growth and innovation within the technology industry. He continues to be an active observer and participant in the evolving tech world.