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 stated 40 million new users. Kik features over 300 million users and it is well-liked by teenagers. 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 mass media in Israeli reported it is around $60-$80 million. It's good to state that Kik has that kind of money to invest. It has elevated $120 million currently, including its latest $50 million increase from China's Tencent at a $1 billion valuation, and helps to keep costs low when you are found in Canada.
Also certain is the fact that 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 anatomist middle, and its own first international bottom part. Kik, which is headquartered in Waterloo, said that they have opened an identical foundation in Toronto, too. Those enhancements take Kik's total headcount to 165 personnel, however the company said it is selecting to get more detailed 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 training video 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 understands developing products that produce talk fun and entertaining for our young audience. The ongoing company has quite strong product and anatomist experience, and we're fired up to join causes to attain our goal of earning chat the central hub for everyday routine," Livingston said in a declaration.
Founded in '09 2009, Rounds offered a distinctive experience at that 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 jointly. That's now a hot space, with startups like Houseparty (formerly Meerkat) beginning to remove with teenagers, which does surge 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.
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