WeChat is far and away the biggest messaging platform in China at the moment, and that is helping to drive a push among the smaller players to get together for better scale. Today,
It’s not clear how that price compares to Tantan’s pre-exit valuation: it had never disclosed the number. Overall, Tantan had raised $120 million, including a
We’d actually heard rumors of this acquisition recently, so it’s not coming as a complete surprise.
WeChat has in a way written the playbook in China for how to leverage a popular social platform to move into other services and it seems that would-be competitors are following suit. Other notable moves and exits in recent years have included
And the deal will indeed give Momo a big boost in its own dating business. Tantan said that it has enabled 5 billion matches since launching in 2015. (As a point of comparison, Tinder — one of the leading dating apps in the West — says that its
This does not signal a shift for Momo into dating exclusively (sorry for the pun), but to double down on one of the more successful ways that it’s diversified its business.
“Our core position will continue to center on social networking and this acquisition enriches our product line in the social space,” said Yan Tang, chairman and CEO of Momo, in a statement. “We will continue to invest and incubate more sub-brands to serve the social and entertainment needs of different demographics. Tantan has become widely recognized within a short period of three years since its inception, which is largely attributable to the outstanding performance of its talented team. We also respect Tantan’s product strategy that focuses on the customer experience of female users. After the acquisition, the Tantan team will continue to operate the mobile apps under the Tantan brand with our full support.”
Indeed, you can see this as similar to the strategy taken by IAC, which operates a number of dating apps alongside Tinder, such as Match.com and OKCupid.
For Tantan, the deal will give the company not just a funding boost but potentially some economies of scale in its developer backend and other areas of its business. “Momo and Tantan have their own strengths in their respective markets and among targeted customers,” said Yu Wang, chairman and CEO of Tantan, in his own statement. “The acquisition is a critical strategic upgrade to cover a greater range of user demographics and needs, and build up a larger social networking market through complementary businesses and strategic synergy. We are very confident in our future development.”
Additional reporting by Jon Russell (not