Match Group is solidifying its expansion beyond on-line dating by means of its acquisition of South Korean social media firm Hyperconnect, CFO Gary Swidler advised CNBC on Wednesday.
The parent firm of Tinder and OkCupid introduced the $1.73 billion stock-and-cash deal for Hyperconnect a day earlier. Hyperconnect is predicated in Seoul and has two predominant apps, Azar and Hakuna Live.
In an interview on “Closing Bell,” Swidler mentioned each of Hyperconnect’s choices fall into the class of “social discovery,” which is a option to meet associates and individuals who have shared pursuits.
Match Group believes social discovery represents an even bigger market than on-line dating, Swidler mentioned. “It’s a very global market, and it’s growing even faster than the dating business,” he mentioned, including it has been helped by the coronavirus pandemic main folks to foster extra connections nearly.
Azar is a video and chat app that gives instantaneous translation for voice and textual content messages. Hyperconnect was based in 2014 and launched Azar that very same yr. The app has tallied greater than 540 million complete downloads, in line with the corporate.
Launched in 2019, Hakuna Live is a livestreaming platform that lets customers create group audio and video broadcasts. It’s registered greater than 23 million downloads, with rising reputation in Japan and South Korea, in line with the corporate.
Hyperconnect mentioned it is worthwhile and introduced in over $200 million in income in 2020. That’s up 50% in contrast with the prior yr. Match Group noticed revenues rise 17% final yr to $2.4 billion.
Match Group has ventured beyond its major concentrate on romantic relationships with apps akin to Ablo, in line with Swidler, who joined the Dallas-based firm in 2015. However, he mentioned the Hyperconnect acquisition “will take us much more firmly into social discovery.” The deal is anticipated to shut within the second quarter of this yr.
Shares of Match Group rose 7.7% on Wednesday to $171.07, notching an all-time intraday excessive. The inventory is up 126% previously 12 months.