South Korea’s Daum Kakao, the company behind the popular messaging service KakaoTalk, announced today it has acquired US-based social networking app Path.
Path was created five years ago and now has 10 million monthly active users.
Path co-founder and CEO Dave Morin said it has now reached the point where more resources are needed to help accelerate its growth and scale.
“We believe Daum Kakao, with its deep understanding of the Asian market and experience in leading mobile innovation, will be able to provide Path users with additional resources and value,” Morin, a former Facebook executive, said in a statement.
Alex Kim, head of Daum Kakao Indonesia, said Path’s strong user base in the rapidly growing Indonesian market makes it a “powerful candidate for growth into a mobile lifestyle platform with rich services”.
Terms of the deal were not disclosed, but none of Path’s staff are expected to transfer to Daum Kakao.
Path was launched in 2010 to give users a personal, private environment for sharing and connecting, and can be used both as a journal for personal record keeping, as well as a way to share news, photos and updates with close family and friends. Its selective sharing features, which allow users to share posts with just a designated group of friends, appealed strongly to the Asian market and contributed to its leadership in Southeast Asia, especially in Indonesia, Daum Kakao said.
Path also includes a messaging app call Path Talk.
Daum Kakao said the acquisition “marks the first of many global business approaches it will take in the coming years”.
The company reported Q1 2015 net income of KRW30.85 billion ($28.3 million), a 23 per cent drop from a year earlier, as it increased its ad and marketing spend to support new services. First quarter revenue was KRW234.39 billion, up 19 per cent year-on-year. Its mobile business generated 55 per cent of total revenue.