Match Group, the owner of online-dating apps such as Tinder, OkCupid, Hinge, and Match.com, is set to buy South Korean social media company Hyperconnect for $1.73 billion.
The company said Wednesday that it has reached an agreement with Hyperconnect to go ahead with their planned cash-and-stock deal. The acquisition will be the largest ever made by the Dallas-based company to date.
With the acquisition, Match Group intends to broaden its services beyond online dating. Hyperconnect currently owns and operates two video-based mobile apps that focus on connecting people through one-on-one and community interactions.
Hyperconnect's first app is called Azar. The app offers users a way to talk to other people speaking different languages through a built-in real-time text and voice translation feature. The second app is called Hakuna Live. The app is a live-streaming app with built-in social functions such as audio broadcasts and group video.
In a letter to shareholders published earlier in the month, Match Group said that it is planning to expand its portfolio to include non-dating social apps. The company also said that it plans to develop new functionalities for its existing platforms to allow users to reach a much wider audience to develop friendships and romance.
A Match Group spokesperson said that the company intends to integrate some of the existing features on Hyperconnect's apps to its own platforms. The company also reportedly plans to integrate new technologies that Hyperconnect is currently developing - including augmented reality and virtual reality-based features.
Match Group Chief Executive Shar Dubey said that the company will be focusing on the new market she calls "social discovery," which she expects to be twice the size of the dating market. Dubey said that through the use of new technologies the company hopes to "fundamentally change" the way people connect online.
Demand for socially interactive apps has recently skyrocketed following the pandemic. Companies such as Match Group and Bumble have made big moves to expand their operations to take advantage of the increased demand. Bumble recently announced plans of listing its shares in the open market through an IPO that is expected to raise its valuation to between $6 billion and $8 billion.
