Tinder’s parent company acquires South Korean social media firm for $1.7b

Dating platform Match Group has announced that it will acquire South Korean social media company Hyperconnect for US$1.73 billion.

The deal, which will be financed through cash and stock, is expected to close in the second quarter of 2021.

Hyperconnect is a social discovery and video technology firm that operates two flagship apps: live video and audio chat platform Azar, and Hakuna Live, a social livestreaming app.

“We will leverage our deep bench of expertise to help accelerate Hyperconnect’s already-impressive growth, look to deploy Hyperconnect’s technologies across our existing portfolio, and continue to invest in their growth,” said Shar Dubey, CEO of Match Group.

The deal is regarded as a big win for the South Korean startup ecosystem.

Hyperconnect says it is profitable and has generated revenue of US$200 million in 2020, a 50% increase from 2019.

The social media company says its Azar app has tallied over 540 million cumulative downloads. Hakuna Live has been downloaded more than 23 million times, with more user growth in South Korea and Japan.

Meanwhile, Match Group reported net income of US$140.6 million, up from $94.7 million in the previous year. The company forecasted “strong growth” coming from both Tinder and its portfolio of other brands in 2021.