Match Group is consolidating its expansion beyond online dating by acquiring South Korean social media company Hyperconnect, chief financial officer Gary Swidler told CNBC on Wednesday.
The parent company of Tinder and OkCupid announced the $ 1.73 billion transaction for Hyperconnect a day earlier. Hyperconnect is headquartered in Seoul and has two main applications, Azar and Hakuna Live.
In an interview with Closing Bell, Swidler said that both Hyperconnect offers fall into the “social discovery” category, which is a way to meet friends and people who have common interests.
Match Group believes that social discovery is a bigger market than online dating, Swidler said. “It’s a very global market and it’s growing even faster than the dating business,” he said, adding that he was helped by the coronavirus pandemic that leads people to encourage more practical connections.
Azar is a video and chat application that provides instant translation for voice and text messages. Hyperconnect was founded in 2014 and launched Azar in the same year. The application recorded over 540 million total downloads, according to the company.
Launched in 2019, Hakuna Live is a live streaming platform that allows users to create group audio and video broadcasts. It recorded more than 23 million downloads, with growing popularity in Japan and South Korea, according to the company.
Hyperconnect said it is profitable and brought in more than $ 200 million in revenue in 2020. It is up 50% from the previous year. Match Group recorded revenue up 17% last year to $ 2.4 billion.
Match Group ventured beyond its main focus on romantic relationships with apps like Ablo, according to Swidler, which joined the Dallas-based company in 2015. However, he said the acquisition of Hyperconnect “will take us much stronger in social discovery.” . The transaction is expected to be completed in the second quarter of this year.
Match Group shares rose 7.7% to $ 171.07 on Wednesday, reaching a high throughout the day. The stock has increased by 126% in the last 12 months.