China's leading social platform MOMO on Friday announced its full acquisition of Tantan, another Chinese online dating services provider.
The deal is set to be finalized in the second quarter of 2018 with US$ 609 million in cash and 5.3 million of newly issued shares.
Wind, a leading Chinese financial information services provider, has estimated the volume of the deal at over US$ 750 million based on MOMO's closing trading price of US$ 30.53 per share on Friday.
MOMO saw a 17.10-percent growth in its Friday equity price.
Set up in 2011, MOMO has presented itself as the largest social networking and entertainment platform in the country, with its business expanding from a social networking provider to a real-time interaction and live streaming platform.
The Nasdaq-listed company saw a jump in its net profits in 2016 but had been confronted with a continuous slump for the first two quarters of 2017.
Moreover, a considerable number of MOMO's paid subscribers for live streaming have not witnessed a noticeable increase for three consecutive months.
Analysts have pointed out that the acquisition of Tantan will offer new chances for MOMO as its users' scope will be optimized.
"We respect Tantan's product strategy that focuses on the customer experience of female users," noted Tang Yan, chairman and CEO of MOMO.
Tantan was launched in 2014 and has completed several financing rounds.
The company finished its Series A financing of US$ 5 million in November 2014, which was led by German venture capital fund BAI.
Its Series B financing of US$ 13 million and Series C financing of US$ 32 million were each finalized in 2015 and 2016.
Another China's leading interactive live streaming platform YY led Tantan's Series D financing round last June, which reached US$ 70 million.
"The acquisition will build a larger social networking market through complementary businesses and strategic synergy," said Wang Yu, chairman and CEO of Tantan, according to the China Daily.
"We are very confident in our future development,"Wang said.
The deal is set to be finalized in the second quarter of 2018 with US$ 609 million in cash and 5.3 million of newly issued shares.
Wind, a leading Chinese financial information services provider, has estimated the volume of the deal at over US$ 750 million based on MOMO's closing trading price of US$ 30.53 per share on Friday.
MOMO saw a 17.10-percent growth in its Friday equity price.
Set up in 2011, MOMO has presented itself as the largest social networking and entertainment platform in the country, with its business expanding from a social networking provider to a real-time interaction and live streaming platform.
The Nasdaq-listed company saw a jump in its net profits in 2016 but had been confronted with a continuous slump for the first two quarters of 2017.
Moreover, a considerable number of MOMO's paid subscribers for live streaming have not witnessed a noticeable increase for three consecutive months.
Analysts have pointed out that the acquisition of Tantan will offer new chances for MOMO as its users' scope will be optimized.
"We respect Tantan's product strategy that focuses on the customer experience of female users," noted Tang Yan, chairman and CEO of MOMO.
Tantan was launched in 2014 and has completed several financing rounds.
The company finished its Series A financing of US$ 5 million in November 2014, which was led by German venture capital fund BAI.
Its Series B financing of US$ 13 million and Series C financing of US$ 32 million were each finalized in 2015 and 2016.
Another China's leading interactive live streaming platform YY led Tantan's Series D financing round last June, which reached US$ 70 million.
"The acquisition will build a larger social networking market through complementary businesses and strategic synergy," said Wang Yu, chairman and CEO of Tantan, according to the China Daily.
"We are very confident in our future development,"Wang said.
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