Match Group Closes Acquisition of Hyperconnect

Rhea-AI Summary

Match Group (NASDAQ: MTCH) has completed its acquisition of Hyperconnect for $1.725 billion, structured as 50% cash and 50% stock. The deal aims to leverage Hyperconnect's technology to enhance user engagement across Match Group's portfolio, which includes popular brands like Tinder and Match. Hyperconnect operates significant social apps, Azar and Hakuna Live, which feature live video chat and streaming capabilities. This acquisition is expected to accelerate Hyperconnect's growth and create synergies within Match Group's offerings.

Positive

• Acquisition of Hyperconnect expected to enhance user engagement and growth.
• Potential synergies between Hyperconnect and Match Group's portfolio.
• Access to innovative technology from Hyperconnect's social discovery platforms.

Negative

• Transaction value of $1.725 billion may strain financials due to cash and stock components.
• Integration challenges could arise from merging Hyperconnect's operations with Match Group.

DALLAS and SEOUL, South Korea, June 17, 2021 /PRNewswire/ -- Match Group (NASDAQ: MTCH) announced today it has completed the acquisition of Hyperconnect, a leading social discovery and video technology company. The $1.725 billion transaction was completed 50% in cash and 50% in Match Group stock.

"Hyperconnect's forward-looking technology has already forged new ways for the next generation to make friends and engage with new people, regardless of borders and language barriers," said Shar Dubey, CEO of Match Group. "Our immediate goal is to accelerate Hyperconnect's growth, while deploying their technology across our portfolio, helping to ensure people around the world have access to the best products to meet new people, and create joyful connections."

Based in South Korea, Hyperconnect employs more than 400 people, of which approximately half are top-tier engineers, and operates two social discovery apps: Azar® and Hakuna Live™. Azar® offers 1:1 live video and voice chat with a strong presence across Asia and growing in Europe. Hakuna Live™, which launched in 2019, provides one to many or group live video, audio, and avatar-based streaming with a highly engaged user base in South Korea, Japan and other markets across Asia.

"We're thrilled to start capturing the huge synergy potential between Hyperconnect and Match Group's portfolio of world-class brands," said Sam Ahn, CEO of Hyperconnect. "We see clear pathways to turbocharge Hyperconnect's growth while adding value to Match Group through our unique technology."

About Match Group

Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of dating services available globally. Our portfolio of brands includes Tinder®, Match®, Meetic®, OkCupid®, Hinge®, Pairs™, PlentyOfFish®, and OurTime®, as well as a number of other brands, each designed to increase our users' likelihood of finding a meaningful connection. Through our portfolio companies and their trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.

About Hyperconnect

Hyperconnect is a global video, AI and AR technology company headquartered in Seoul, South Korea. Founded in 2014, Hyperconnect is the operator of groundbreaking social discovery products including real-time video chat app 'Azar' and social live streaming platform 'Hakuna Live.'

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not historical facts are "forward looking statements." The use of words such as "anticipates," "estimates," "expects," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: Match Group's future financial performance, Match Group's business prospects and strategy, anticipated trends, and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: uncertainties related to, among other things, the costs and expected benefits of the transaction, any litigation arising out of or relating to the transaction, and the impact of the transaction on the business of Match Group; and other circumstances beyond Match Group's control. Certain of these and other risks and uncertainties are discussed in Match Group's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect Match Group's business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Match Group management as of the date of this press release. Match Group does not undertake to update these forward-looking statements.

 

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SOURCE Match Group

FAQ

What is the value of Match Group's acquisition of Hyperconnect?

The acquisition is valued at $1.725 billion, completed with 50% cash and 50% stock.

How will Hyperconnect benefit Match Group?

Hyperconnect's technology is expected to enhance user engagement and grow Match Group's offerings.

What are the main products of Hyperconnect?

Hyperconnect operates Azar and Hakuna Live, both of which focus on social discovery and live streaming.

When was the acquisition of Hyperconnect completed?

The acquisition was completed on June 17, 2021.

What challenges might Match Group face after acquiring Hyperconnect?

Potential integration challenges could complicate the merging of operations and cultures.