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.