Match Group Makes 1.7 Billion Acquisition of Social Media Company

Match Group is expanding its portfolio with the acquisition of Hyperconnect, a popular South Korean social media company. Match Group purchased the company for $1.7 billion in stock and cash, according to an announcement made by the companies.

Match Group CFO Gary Swindler said in an interview with CNBC that the move to acquire Hyperconnect positions Match Group for further growth, as social discovery apps are a new way for people to connect beyond dating apps. Virtual connections have been in increasing demand since the start of the pandemic, with people isolated in their homes and feeling disconnected. Social discovery apps have been hugely popular and are expected to grow at a faster rate than dating apps, particularly in Asian markets, according to Swindler. 

Match Group has been investing heavily in Asian markets the past few years, installing new executives to oversee markets in Japan, India and Southeast Asia. The company is focusing on the younger populations in these countries, who are quickly turning to online connection tools and dating apps. Japan has become Match Group’s second-highest grossing market after the United States, with revenue growing more than 600% in the past five years.

“With more than 75% of usage and revenue coming from markets spread across Asia, their product suite and regional footprint squarely complements our own,” Match Group Chief Executive Officer Shar Dubey said in a statement.

Hyperconnect is based in Seoul and has two main apps, Azar and Hakuna Live, two social discovery sites where people with similar interests can meet and connect. 

Azar is a video and chat app whose unique appeal is that it offers instant translation for voice and text messages, making geographic and cultural boundaries less of an obstacle to meeting new people. The app has had over 540 million downloads since its release in 2014, according to Reuters. Hakuna Live is a livestreaming platform that lets users create group audio and video broadcasts, and has had more than 23 million downloads, with particular growth in Japan and South Korea. Match Group’s Plenty of Fish app debuted its new livestream platform last year, and it has become one of its most popular features.

Hyperconnect has brought in over $200 million in revenue in the last year, up 50% from 2019, according to Reuters. Match Group has also seen growth, with a 17% increase in revenue last year. The deal is expected to close in the second quarter of this year.