Dating app parent company Match Group recently announced that the business would be acquiring Hyperconnect, a social platform company utilizing video and artificial intelligence software AI. The $1.7 billion deal between the companies is expected to close in Q2 of this year.
"As the social discovery space continues to expand, the timing couldn't be better to partner with a global operating expert like Match Group," said Hyperconnect CEO Sam Ahn. "Match and Hyperconnect draw from a common philosophy: utilize technology and know-how to drive meaningful connections through trusted brands that users love. Hyperconnect is proof that technology can create global opportunities – even for a small start-up from South Korea – and we're thrilled to have found a partner that values this thinking."
Hyperconnect Meets Match
Match Group boasts an impressive portfolio of leading companies in the online dating business. Companies under the parent organization include household names such as Tinder, Match, OkCupid, Hinge, and more. Match Group claims to have pioneered the concept of online dating since the founding of the business in 1995.
Hyperconnect, while not specifically a dating app company, is responsible for its own unique social platforms. Azar is a live video chat app that enables users to meet new people across the world. The business uses AI to translate text and audio instantly in the app, allowing for communication between users from diverse cultures and regions without the complication of language barriers. More recently, the video and AI tech company released Hakuna Live, an interactive streaming platform for content creators and viewers to hold discussions and hangout digitally. Hyperconnect has garnered over $10 million in funds from investors.
Online Dating Continues to Grow in Popularity
A study conducted by Stanford sociologist Michael Rosenfeld found that today’s couples are actually more likely to meet through online mediums provided by businesses like Tinder rather than through mutual friends. Furthermore, market research expects the online dating industry to become a $9.2 billion industry by 2025.
Match Group reported $651 million in revenue for the business in Q4 2020. Despite owning many of the most successful apps in the industry, Match faces competition from competitors such as Bumble, which plans to take its business public with an initial public offering (IPO) of 45 million shares at somewhere around $38 per share.
About the Author
James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.