Kik Spy Snaps up video chat app maker Rounds for a reported $60-$80 million Kik Spy Snaps up video chat app maker Rounds for a reported $60-$80 million
Kik Spy Snaps up video chat app maker Rounds for a reported $60-$80 million
Messaging company Kik has made its second major acquisition after it scooped up Israel-based mobile video app maker Rounds in an undisclosed deal.
Though neither comparative part is offering a cost, you would suppose it is more than what Kik payed for GIF Relay, its first acquisition from 2014, considering that Rounds had lifted over $20 million from buyers and said 40 million new users. Kik provides over 300 million users and it is well-liked by teenagers especially. It generally does not disclose monthly user numbers however, many reports have pegged its engagement alongside that of Snapchat.
Kik CEO Ted Livingston dropped to provide us a cost, but local press in Israeli reported it is around $60-$80 million. It's reasonable to state that Kik has that kind of money to invest. It has increased $120 million currently, including its latest $50 million increase from China's Tencent at a $1 billion valuation, and continues costs low when you are found in Canada.
Also certain is the fact the offer will immediately bolster Kik's technical team. The Canadian company is acquiring all 35 personnel from Rounds, and turning its Tel Aviv office into a Kik product and executive middle, and its own first international basic. Kik, which is headquartered in Waterloo, said that it includes opened an identical basic in Toronto, too. Those improvements take Kik's total headcount to 165 personnel, however the organization said it is selecting for further personnel.
Interestingly, both companies didn't await this package before combining causes. A Kik agent verified to us that Rounds was in charge of the technology behind Kik's new video recording chat feature, in Dec that was launched out. So it appears like we can get more video features to roll out soon.
"The team at Rounds has learned developing products that produce talk fun and entertaining for our young audience. The business has quite strong product and executive experience, and we're fired up to join pushes to attain our goal of earning chat the central hub for everyday activity," Livingston said in a declaration.
Founded in '09 2009, Rounds offered a distinctive experience at the right time -- permitting up to 12 visitors to take part in live talk, with the choice to do things such as doing offers, reading stories and even more along. That's now a hot space, with startups like Houseparty (formerly Meerkat) needs to remove with teenagers, which does grow questions as to the reasons Rounds has been sold.
“We saw Kik as the perfect partner to expand our reach to such a vast audience” gushed Rounds CEO and co-founder Dany Fishel in a canned comment.
“It’s rare when two companies share a similar culture and vision of connecting people through fun, meaningful experiences, and we’re eager to build the next great platform together,” Fishel added.